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Gold Price Drop While the Printing Pressses are being Revved Up...............
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<p>[QUOTE="Cloudsweeper99, post: 1236490, member: 3011"]There is no law of nature that says gold must perform every day as you state. You may also want to consider that historically, high levels of debt are resolved by massive deflation [default] as often as they are by inflation. The money is the debt and the debt is the money. The economy is currently in a liquidity trap where low interest rates do not result in more borrowing because there is no demand for the new products that would be created by new production. So while the Fed is creating debt, the private sector is reducing it. The case for inflation or deflation will depend on policy actions in the future, so nobody can do more than guess.</p><p><br /></p><p>That said, I expect gold and silver prices to continue to rise for awhile yet because there is no sign that the bull market in metals is ending. But the prices are controlled more by speculation than fundamentals now, and the true believers in gold and silver will probably eventually go over the cliff just as the tech stock believers did in 2000.</p><p><br /></p><p>Good luck.[/QUOTE]</p><p><br /></p>
[QUOTE="Cloudsweeper99, post: 1236490, member: 3011"]There is no law of nature that says gold must perform every day as you state. You may also want to consider that historically, high levels of debt are resolved by massive deflation [default] as often as they are by inflation. The money is the debt and the debt is the money. The economy is currently in a liquidity trap where low interest rates do not result in more borrowing because there is no demand for the new products that would be created by new production. So while the Fed is creating debt, the private sector is reducing it. The case for inflation or deflation will depend on policy actions in the future, so nobody can do more than guess. That said, I expect gold and silver prices to continue to rise for awhile yet because there is no sign that the bull market in metals is ending. But the prices are controlled more by speculation than fundamentals now, and the true believers in gold and silver will probably eventually go over the cliff just as the tech stock believers did in 2000. Good luck.[/QUOTE]
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