Lukester

Gold Price Plunges: Might as Well Hold Stocks

Great comment Mr. Szabo! I've also followed Mr. Amberger's comments and thoughts over the years, and occasionally they are not bad. However the comments on gold above are more than a little myopic at this juncture, and as you point out, quite ahistorical too. I am also underwhelmed by his perception of "value" in the purchase of these "beaten down financial stocks". If his intuition is telling him these are "great buys" now due to their being something more than a mere trader's six month rally (perhaps at very best), and if he were my financial adviser making a "sell gold buy financials" call, I would pan him for that call. That means, "thank you, but you have just been dismissed". The interest in financial shares here at "bargain" prices evidences a curious lack of engagement with the most probable course of America's economic fortunes in the next five to fifteen years.

I much appreciate your own work Mr. Szabo, and that of your stalwart (now former) associate, Antal Fekete, who enjoys a reputation for considerable sobriety and depth of thinking as to the decade facing us ahead.

Mr. Amberger's offhand comments here suggest he might benefit from shedding one or two of his conceits and "reading around" a little more broadly. A certain Mr. John Williams of Shadowstats, and a certain (now former) US Comptroller General "Walker", come to mind as an obligatory first stop on such a "reacquaintance tour" of our current economic landscape, for Mr. Amberger. Anyone wishing to sound breezy and glib on the topic of gold and silver's relevance today is skirting perilously close to becoming a "callow financial analyst", which is sooner or later, a risky analyst to follow. There was a time, for several decades past, when Mr. Amberger could get away with that sort of breezy dismissal of the need to seek shelter from a structural, very high inflation (not "hyperinflation", but cripplingly high inflation nonetheless) which the US is apparently now condemned to go through at some point in the next few years, but Mr. Amberger at least to my view does not have the margin as an analyst, to indulge that breezy dismissal any longer. He no longer has this license, not by my say-so, but by the say so of people like Comptroller General Mr. David Walker and Mr. John Williams, who has been tracking the government's approaching fiscal "hard landing" (more like a ripe tomato about to hit the concrete at speed) for many years. Mr. Amberger apparently needs to either shed his gadfly tone about his recommendations as a financial adviser confronting this fiscal mess upcoming, or "go back to school" and desist from dispensing financial advice while he gets up to speed on the larger issues behind gold's re-emergence.