50 years of suppressing silver (and gold), page-24

rowingboat

If you get this right you will set yourself up for a life of ease on the French Riviera, or wherever else you want to live. You appear to be very well organised. Good luck in this endeavour. I hope to make do with a reasonable gain from getting the upward direction in the gold price about 70% right. I use a seat of the pants approach in assessing things.

Here is a good article by Adrian Ash about the significance of the relationship between the price of gold and real interests rates.

http://www.financialsense.com/fsu/editorials/ash/2010/0623.html

"Short of a revolution in Fed thinking (no sign of that today), the decade starting Jan. 2002 looks set to deliver yet more negative real rates before 2012, if not beyond. Which will continue to mean that:

??Holding cash-on-deposit guarantees a loss of real value, something that even the most passive, cautious savers will only put up with for so long;

??The opportunity cost of holding gold or silver ?C the foregone interest you'd otherwise receive on cash ?C remains absent."

If Prechter is right that the sharemarket will bottom in 2016, which usually occurs before an economic upturn, then we may have negative real rates well beyond 2012 and, hopefully, concurrently rising gold prices. If this is a deflationary period then the price of gold may go up a lot more gradually than what occurred in the late 1970s to 1980 when we had high inflation with negative real rates on US government bonds. Perhaps that may also mean that the gold price will not fluctuate as wildly as back then in percentage terms (this just one possibility).

loki