ozzy43

Precious Metals: Emotions Still Stronger Than Fundamentals

"Why would anyone buy gold when the dollar is heading up? Also why are some advisers so slow to see that there has been a change?"

Perhaps 'some advisers' have determined that your 'change' - in dollar fortunes - does not appear to have any basis whatsoever in fundamentals, and therefore does not, in fact, represent a lasting change at all, but a transient rally to be followed by a crash.

Or did the US government suddenly do a 180 and become the very model of fiscal responsibility when I wasn't looking?? Fat chance.

The Bedrock Case for the Return of the Gold Bull

rawprawn I am not sure, but I *think* the author meant something like this:

"When prices start to fall in earnest, people [i.e. consumers] lose their jobs, and get scared and start cutting back on all their purchases".

The Bedrock Case for the Return of the Gold Bull

"Gold will never be accepted as legal tender in the grocery store. It will always have to be converted into paper."

Tell that to the folks in Zimbabwe. The whole point here is that, when legal tender becomes worthless (wheelbarrows full), there will be plenty of folks willing to accept something of REAL value - gold, silver, and the like - in exchange for what they're trying to sell. At least, that's precisely what's happened the other gazillion times in history that fiat currencies have imploded, from 11th century China to 18th century France to 19th century America (ever heard of the Continental?) to 20th century Germany. Of course the poster who wrote the above may be right - maybe we are just so amazingly smart and special, we 21st century humans, with our central banks which simultaneously create AND fight inflation (neat trick, that), that for the very first time in thousands of years of recorded history, a fiat currency in the hands of a reckless government will not wind up causing a hyperinflationary environment to ensue engendering a collapse of the monetary system and a flight to whatever people perceive as 'things that hold value', with gold having historically topped the list.

Yeah. I'll expect that to happen just as soon as politicians learn to tell the truth.

Not all Metals are Created Equal (Part I)

This analysis seems to rely on the fundamental assumption that peak oil is a non-event. That is, it relies upon the presumption that we're not entering a completely new paradigm as regards global energy supplies. Perhaps this is accurate. But if the peakers are right - and I think an analysis which draws this conclusion is at the least plausible - then all of this analysis rests on flawed assumptions about the future state of the markets, and indeed the world.