THE DROP IN GOLD MAY CONTINUE...BUT HOLDING GOLD LONG TERM IS STILL THE BEST BET...
NEVERMIND THAT GOLD HAS BEEN A WINNER YEAR OVER YEAR RECENTLY...
GOLD ALSO HAS MACROECONOMIC THEORY ON IT'S SIDE...AND THIS CAN NOT BE DENIED...
MUCH OF THE "STORY" AGAINST GOLD IS SIMPLY A STORY AND NOTHING MORE... TRUE, THE MARKET GETS OVER BOUGHT AS HEDGIES PILE IN AND PILE OUT LOOKING FOR THE NEXT NO-BRAINER...
BUT THE FACTS REMAIN THE SAME... THE FEDERAL GOVERNMENT IS AWASH IN DEBT...AND IS PRINTING MONEY LIKE NEVER BEFORE...
THIS AT FIRST IS "GOOD FOR" THE DOLLAR....BECAUSE THE FEAR OF "TOTAL COLLAPSE" IS ABATED.
BUT THERE IS MORE TO A HEALTHY CURRENCY THAT AVOIDING THE COLLAPSE DU JOUR...!
I SAY LET GOLD FALL... I HAVE NO IDEA WHERE THE "BOTTOM" IS...THE LOWER THE BETTER AS FAR AS I'M CONCERNED...
THE BOTTOM WILL LIKELY BE WHEN THE LAST OVER-LEVERAGED HEDGIE HAS LIQUIDATED HIS BET AND CLOSED HIS POSTION...
BUT THAT AIN'T SHIT TO ME... HEDGIES COME AND HEDGIES GO...AND THEY ALL GO BROKE IN THE END...JUST LIKE THE GOVERNMENTS THAT PRINT "RESERVE CURRENCIES..."
GOLD IS NOT A 6 MONTH INVESTMENT...OR EVEN A ONE YEAR INVESTMENT...GOLD IS THE ULTIMATE LONG TERM INVESTMENT...
THERE IS ALMOST ZERO CHANCE THAT WE CAN GO BACK TO THE CHEAP GOLD OF THE PAST... CHEAP GOLD AND CHEAP OIL JUST ARE NOT MACROECONOMICALLY POSSIBLE IN THIS ENVIRONMENT...
THAT'S WHY GOLD HAS BEEN A BIG WINNER... AND WILL CONTINUE TO BE A WINNER...
ONCE THE BULLSHIT IS CLEANED UP...AND FOCUS IS RESTORED TO WALL STREET.
