JustACommodsTrader

Attention Gold Bugs: Hyperinflation or Deflation?

I agree that it isn't the time to be long gold...It's a damned if you do, damned if you don't view:
1. If the world economy gets back on track, a chunk of the recent demand will slip away as the fear factor recedes.
2. If the world economy continues to plunge and deflation is the word, then gold is definitely out.
But this isn't a long-term view. It's a one to two year view.
The longer-term view has the US balance sheet looking more like Argentina's. The US will have to beg for money. This will eventually weaken the dollar, no matter what happens to US interest rates. Gold will then be a great buy, again.