The Indices, oil, commodities AND Gold.
By Daniel at 10 July, 2009, 11:17 pm
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As we all know, the Dow is now headed lower, and job numbers and the like are still dismal; there is the likelihood there will be a run on the dollar someday due to the HUGE monetisation of debt. This could be a fallout of many variables, one being failures in T-Bill auctions; so when panic occurs, it is then that gold will start to rise; we have way to go.
“For the next two years, deflationary pressure is going to be dominant, and it is going to become a time bomb down the line if and when we keep monetizing large deficits. It may be too soon to hedge with gold,” according to Roubini
“Unless we have high inflation, or…other risks like depression, gold looks toppy,” ~
Roubini.
Genuine deflation is a sustained contraction in the total supply of money and credit, NOT a fall in the general price level
It’s actually more accurate to say that gold is an effective hedge against the loss of confidence in a currency sometimes caused by inflation or in times of panic.
Asd.
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