tentative tuesday shorting, page-63

Hey Monkey,

Look I agree with you on the Ponzi scheme thing, and one of the few reasons why I still have a feeling we have not seen the lows in this market yet, is the fact that the US is effectively broke.

However, I do have an opposite view of the gold/silver play.

I'm of the view that the value of gold (silver to a certain extent) should NEVER change, if it is a real store of value.

When you say gold goes up in price, you are basing it on the USD. Therefore, the correct assumption would be that if USD tanks, gold goes up, BUT only if you value it against the USD.

My contention to gold bugs is, and has always been, that I agree with you with respects to it being an inflationary hedge, BUT....if thats the case, you shouldnt be speculating on it, because it is after all a function of a currency when you are trading it.

If you buy bars and lock away in your safe, fine. But if you are hoping for a point where gold converts to 2000 bucks an ounce, i think you have to ask yourself, if the profits you will make will actually be spendable in a currency form. And once that occurs, maybe you physically cant buy any assets, unless you have gold bars.

Unless I have it wrong, the only reason for gold to go up by leaps and bounds, is for global currency to get destroyed. We have the worst possible period for that last year, and gold really didn't do all that much. It didn't even go to its previous high BEFORE the meltdown began.