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Gold's a Great Investment Because There's a War Coming

Posted Oct 29, 2009 11:05am EDT by Henry Blodget in Investing
Related: gld, gdx, nem, fcx, dia, spy, qqqq

The people who are telling you to buy gold because of impending hyper-inflation don't know what they're talking about, says "cycles" analyst Charles Nenner.

Yes, gold has done well in times of inflation.  But it has also done well in times of deflation.  So the causality link between inflation and gold I wildly overblown.

The real reason to own gold, says Nenner, is that there's a war coming.  Gold does well in times of military conflict, and we're heading pell-mell into an era of military conflict.

Specifically, says Nenner, there will be a big war in 2013.  He doesn't know who will be fighting who - cycle research doesn't help with that - but he suspects the war will be between Muslims and the West.  Even if war isn't the answer, Nenner thinks it will drive gold prices higher.

But don't listen to these wackos talking about gold going to $5,000 an ounce, Nenner concludes.  That's just a bunch of baloney.

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