gatersaw

Paradigm Capital Analysts: More Gold Takeovers to Come

I don't think anyone anticipated an extremist left wing president that would triple the national debt in 6 months! I'm getting in your buying gold boat but here is what I'm doing that is a little different. Gold is considered a currency until what happens? Until China decides it is not a currency. I'm buying silver which is an industrial metal as well as hard currency, copper, soybeans, corn because if the system really does fail food is going to be more important than metal for a while. My intention is to begin buying these things after the next drop in equity prices in the USA. I foresee a big drop coming thanks to corporate defaults and another wave of housing defaults. This wave of defaults will do the same as the first one. If you were not paying attention it will cause deflation again which raises the value of the dollar and deflates the value of equities and real estate. I see this happening very soon. So you gold buyers are going to have another 3-6 months to wait before going to the moon. Maybe another year but I doubt that.
financialworldmarketsm.../

To: Novice investor. Thanks for your opinion.


On 2008 Aug 06 02:29 PM gatersaw wrote:

> Gold tracks global inflation. The inflation balloon in the US has
> been relieved by decreasing housing prices and falling equities prices.
> Countries hold their inflation in these two asset classes. If the
> largest economy in the world has let the air out of its inflation
> storage device then why would gold appreciate vs the dollar?
> There was a pin prick of the inflation balloon in the UK in November
> 2007. EU felt the "pop" in April 2008. Inflation is going down now
> not up. We experience inflation at the grocery store at present because
> it's "baked in" to the economy and will take time to find it's way
> out as producers experience cheaper production costs.
> There is no reason for a gold rally right now. We should revisit
> this thought in a year but most likely we won't be buying gold for
> 2 years.

Paradigm Capital Analysts: More Gold Takeovers to Come

Gold tracks global inflation. The inflation balloon in the US has been relieved by decreasing housing prices and falling equities prices. Countries hold their inflation in these two asset classes. If the largest economy in the world has let the air out of its inflation storage device then why would gold appreciate vs the dollar?
There was a pin prick of the inflation balloon in the UK in November 2007. EU felt the "pop" in April 2008. Inflation is going down now not up. We experience inflation at the grocery store at present because it's "baked in" to the economy and will take time to find it's way out as producers experience cheaper production costs.
There is no reason for a gold rally right now. We should revisit this thought in a year but most likely we won't be buying gold for 2 years.