chux08

Which Way for the Prices of Oil and Gold?

"Deutsche Bank has called the top of the commodity cycle. The uber-bulls of the oil, food and metals boom have advised clients to take profits before the downturn engulfing most of the global economy works its inevitable effects.

Oil will slide back towards its "marginal production cost" of $60 to $80 a barrel; gold will slump to $650 an ounce as the dollar recovers against the euro; copper, lead and tin will slowly halve in price; grains will calm down as harvests in Australia and the Eurasian Steppe return to normal."


This is unrealistic double talk given by an institution that specializes in such...
Talk is cheap! And that's all this is. It wouldn't surprise me if this was just the public stance and then in reality they're (still) ALL IN on the present "commodity super-cycle" and if they're not, then they deserve to go under/away. I'd no more believe this part of the article than to say that today isn't an EXCELLENT day in which to purchase some gold due to falling gold prices.
Gold as a commodity?? Only in America...
Repeat after me: NOTHING HAS CHANGED. GOLD IS REAL MONEY, GOLD IS REAL MONEY, gold is REAL money and the time to buy some is NOW. Wow! Sub $900 gold. And when I happen to have some paper money to convert, to boot!!! What a great day and a GOLDEN OPPORTUNITY...

Which Way for the Prices of Oil and Gold?

"It's deflation, not inflation."


from the latest Casey Report:

"Inflationary or deflationary? A deflationary depression would resemble the worldwide troubles of the 1930s, characterized by falling prices. An inflationary depression would resemble that of Germany in the early 1920s or Zimbabwe today, characterized by soaring prices."


I'm guessing the soaring prices model to be in vogue here...
Doug Casey (and many others), whom I respect both because he's died in the wool Austrian economistic in his political and economical views and he's been dead right so far, states there won't be deflation. He mentions numerous reasons why and is flawless in his writings stating with much logic why that will be so. Enough so that I also remain convinced that inflation will be the real problem and I'm making my needed financial adjustments as such.
I'd suggest reading his views, comments as well as his recommendations. The commentary alone is well worth the price of a subscription...

caseyresearch.com/