BrunoT

Gold ETFs: What Went Wrong With Conventional Wisdom?

Does it occur to the author that the dollar has strengthened on the fact that there is a temporary demand for them in lieu of stocks and in lieu of foreign currencies that are in bad shape? Once this settles in the market price, and once consumers and others wake up to massive inflation from money printing and endless "bailouts" and "stimuli" ahead, won't gold rise then?

Also, please note that just because other countries are printing money like crazy, that doesn't "strengthen" the dollar against anything except those currencies. Go check how many oz of gold things cost today vs before. Be it a house, a gallon of gas, food, you name it.

Thinking in nominal terms of dollars and in the very short term only is how one finds himself poor in retirement.

Gold has several factors temporarily holding down its value, but my bet is that they are only temporary. For starters, the economy has to adjust to a lower standard of living, which means selling cars, homes, and other non-essentials at fire-sale prices, which dampens inflation numbers. If we could simply print $1,000,000 into every American's pocket to solve our problems we'd have already done it. But at some point this money creation will show up in price inflation. EVEN homes. But by the time that happens a loaf of bread will be $10.

The hard part is knowing exactly when this will occur. That's why I bought in at $675-$910 and am holding my gold.

Jim Rogers pointed out in an inteview how commodities have seen several vicious corrections on the way up for years now, but the trend has always been up.