petersl

Gold's Divergence Between the Paper and Physical Markets

The prognostication that gold prices will descend as rapidly and as drastically as Kevin Depew predicts, is a possibility, no doubt. Whether it is a probability is open to severe question. If there is deflation in the wind, the response of central banks and governments who control currency policy for their respective polities, is to inflate or die. Weimar is too distant and too German a phenomenon to bother the priests in the temple, to do otherwise. This being the case, which I feel it is, precious metals are a good refuge. 5% in the metal in one's portfolio is a good place to begin. We are being handed a great opportunity to purchase some gold and silver at what will appear in the future to be bargain basement rates. I think that the downdraft in the prices, however, is still underway, so choosing an entry point will not be without its risks.