Chickenpookie

Canary in the Gold Mine

Was I wrong? Peter - Your timing was impeccable, please tell us more!


On Sep 13 05:00 PM Chickenpookie wrote:

> Gold - Hmm, thanks for buying mine Friday. Inflation - Sure, because
> there's just huge piles of money chasing consumer goods right now.
> There's nothing like the beauty of a perceived increase in future
> prices to get the consumer shopping again, just in time for Christmas?
>
>
> This thesis leaves out too many details Peter, and where was the
> interest in gold a few weeks ago? I remember hearing a lot about
> how gold was about to dive.
>
> I think we all need to do some more homework before jumping to conclusions,
> if it were so simple, gold would already be $5000/oz. I can envision
> several mechanisms that could be used for paying down interest on
> the federal deficit without inflating, but haven't heard any consideration
> of this subject from inflationista's. The FED must have a myriad
> of ways for reeling in inflation and will do so at the appropriate
> time.
>
> How many poor schlubs are going to be caught buying gold at prices
> which are too high for justification? Maybe once gold begins to
> outperform the S&P I'll think about buying it once again but
> right now I'm more concerned about an equities market sell off.
> That would hammer precious metals prices.

Canary in the Gold Mine

Gold - Hmm, thanks for buying mine Friday. Inflation - Sure, because there's just huge piles of money chasing consumer goods right now. There's nothing like the beauty of a perceived increase in future prices to get the consumer shopping again, just in time for Christmas?

This thesis leaves out too many details Peter, and where was the interest in gold a few weeks ago? I remember hearing a lot about how gold was about to dive.

I think we all need to do some more homework before jumping to conclusions, if it were so simple, gold would already be $5000/oz. I can envision several mechanisms that could be used for paying down interest on the federal deficit without inflating, but haven't heard any consideration of this subject from inflationista's. The FED must have a myriad of ways for reeling in inflation and will do so at the appropriate time.

How many poor schlubs are going to be caught buying gold at prices which are too high for justification? Maybe once gold begins to outperform the S&P I'll think about buying it once again but right now I'm more concerned about an equities market sell off. That would hammer precious metals prices.