A Different Look At Pms

Either way there will be some poop.

Last time interest rates were this low the fed started raising interest rates by 1/4% every fed meeting. The stock market went down every time interest was raised. The only claim Bernanke can make about any success throughout this debacle is the stock market. If the market starts to drop again erasing any retirement money that shareholders have regained will go right down the toilet and his last card will have been played. Aside from the stock market, every measurable gauge of recovery in this economy is negative to terrible. It's a good thing that gold is not considered a threat to the fed. Those of us putting false hopes in the "tradition" of gold as a hedge may sneak by unnoticed and succeed where all other strategies wallow in the mire. I'll take my chances with deflation for awhile anyhow. It won't appear overnight and precious metals will remain easy to liquidate until very near the weary end.

Could PM crash and burn with everything else in deflationary times? Yup. Even if they do, however, remember that they are a store of value, not necessarily a profit maker. If a silver quarter continues to buy at least a gallon of gas, it's done its job.

Indeed it is. I've seen the very same effect caused by Bernanke speaking. Almost makes one think that silence really is golden.

I'm not at all surprised, Thunder. There is a HUGE amount of money on the investing sidelines now. I am not alone in this. I can deal with a flaky market but combining that with flaky politics makes for an untenable investment situation.

Yes, I have seen Dick Bove on CNBC many times. I agree with this comments and positions more than 90% of the time. This appears to be yet another one of those times.

The link I posted now has the video.

I wonder IF there was a period of serious deflation if gold wouldn't hold its own? I mean in times of deflation cash is king but in today's world of currency backed by nothing would not gold be right in there with most any of currency, maybe even king of them all?

So are you saying gold isn't money?

I've watched that video from the original post twice now and it dawned on me the 2nd time through that this guys theory is based on US demographics but he is trying to extrapolate that to global currencies. I would have liked to see some numbers on the global population cycles if he wants to apply it to forecasting global currencies. I can see how he would have success applying the life cycle of the baby boomers to US economics but we are not the world's biggest buyers of gold (for example) that honor goes to India. I really think that is the weak part of his theory, but he will probably sell lots of news letters anyway.