Thursday, April 26, 2007
Inflation v deflation: make your mind up time
Gold goes up when inflation goes high
It also goes up when banks are threatened and confidence is lost.
It's time to decide if this bubble will end with hyper-inflation or as a deflationary depression.
As the US economy slows, inflation fears will recede and gold will fall.
We are seeing this now.
Personally, I am in the deflationary depression camp
For those who share my views it might be worth waiting for the first stage of the stocks crash before buying gold.
Gold should tumble with stocks initially, as everything gets sold off.
We saw this in February
Once the scale of the crises begins to appear then gold will rise again – into orbit.