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http://www.investmentrarities.com/best_of_...d_russell.shtml

 

Sometimes I just feel like writing what I'm thinking. When I'm confused, I know it, and I admit it. And I'm inclined to write about it. This is one of those times. Funny, my thoughts always return to gold. I like gold because no man or government can destroy it. It's outside all the man-made systems, gold is intrinsic wealth on its own. I like gold -- the worse and the stupider man's world, the more I like gold.

 

Through all the idiocy and mistakes men have made through the centuries, gold remains wealth. Nothing else has.

 

 

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That's a really good piece. I've also given up worrying about whether it's inflation/deflation/hyperinflation.

 

I figure that since 2000 every single major asset class (stocks, bonds, real estate, currencies) has deflated in terms of gold. The 1930s were a period of severe deflation where assets all fell in value against the dollar. But then the dollar was gold, so to me it was a deflation against gold.

 

I think we will continue getting deflation in all these assets against gold. Gold is money and we need to use some kind of fixed neutral measure to properly measure inflation/deflation.

 

At some point assets will stop deflating against gold which is when deflation will be over and paradoxically the new inflation will mean we should sell gold and buy other assets. :blink:

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Richard Russell has changed the picture on todays site from a bear to a bull,because the transports have confirmed the dow in dow theory,but says this is still only a bear market rally.

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That's a really good piece. I've also given up worrying about whether it's inflation/deflation/hyperinflation.

 

I figure that since 2000 every single major asset class (stocks, bonds, real estate, currencies) has deflated in terms of gold. The 1930s were a period of severe deflation where assets all fell in value against the dollar. But then the dollar was gold, so to me it was a deflation against gold.

 

I think we will continue getting deflation in all these assets against gold. Gold is money and we need to use some kind of fixed neutral measure to properly measure inflation/deflation.

 

At some point assets will stop deflating against gold which is when deflation will be over and paradoxically the new inflation will mean we should sell gold and buy other assets. :blink:

Good point about the 30s deflation. Unbacked by gold, this time round currencies themselves will most probably be caught up with deflation..... eventually. And will certainly be volatile. I call this hyper-deflation.

 

The bond kings at Pimco are calling for a generation of stagnation. I doubt somehow that we will be worrying for quite some time when to dash out of gold. I think for many it will be a case of buying deflated property when the situation suits them.

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