This is the setup for the real crash.Are we at $1.80 yet?
Also Gold hit it's all time high when the Dow was over 2,000 points higher than it is right now, my bet is the coming years,inflation and uncertainty, $900 will look like a real bargain!!
>>When the market bottoms gold will collapse. <<You don't say,,, and when can we expect to see the market bottom ??What about terrorism, I suppose that threat will disappear the same day of your market bottom ??
All the credit being created by the gov't is not even so far offsetting the deflation that is occuring, or the market would be flying..This is very typical post-bubble market and gov't behavior. We've just finished what is called an echo bubble. It's been more dramatic than I expected but consider the circumstances.Be open to Depression occuring in countries that fail to inflate their money supply. We won't have that problem but many emerging markets will collapse if this keeps up.People will be WISHING for inflation. Gold is only up due to the market volatility, not due to any inflation worry.When the market bottoms gold will collapse.
If any of these bailout programs kick in and actually work, look out for some double digit inflation in the next couple years. Oil will fly again and take Gold along for the ride.
We are facing DEflation, not inflation.Watch the long bonds..Later on, when the liquidity has returned then we may get some inflation but it won't be much.
Based on the highs of the 1980's factoring in inflation, gold, even at this level is woefully under priced
I can tell you this.The more fear I see, the more tempted I am to buy.I swear, I can feel the fear building. I see it in peoples eyes and hear it when they speak.We are getting close...
Contain your enthusiasm. The market is trying to price in a deep, steep recession and is getting there a little too quickly is all.So it shall bounce, but I think Nasdaq 1600's before it does. That may seem unreasonable but now is the time to be unreasonable.Then sell the bounce. This is just the first time down. Next time will go lower.