although i think it's great, page-17

Hi Sandy,


I agree with much of this sentiment: "i also believe it's reasonably safe to say it's a "bubble" which at some time in the future will retreat in price as the markets improve."

I agree with it, in that eventually gold will bubble and it will pop. But, I don't agree that it will happen "as the markets improve".

As far as I can see, the policies adopted thus far to improve every nations' economy are inflationary. So, I only see markets improving if we have inflation. Inflation is good for gold.

In the medium term, markets aren't improving because of concern that a big bank or a some nation will collapse. This - as far as I am concerned - is what is pushing up the POG presently.

So I see a win-win for gold for some time. If the govts fail to reflate economies, more and more disasters will loom keeping the POG from collapsing. However, if govts do eventually manage to reflate things and take the markets with them, this will most likely be in a high inflationary period. Again good for gold.

Like anybody, I see a spike in price and straight away look to the downside (indeed, I think that gold investors are naturally inclined to always look to the downside: hence them being gold investors). But nothing 'pops' because there is a law out there saying that it must. And I think that we are a long, long way from having conditions that will 'pop' the POG.

Most likely the world economy will sort itself out and be done with both deflationary and inflationary worries. But until we see some signs that neither are going to occur, then we can feel pretty safe investing in gold.

I am not into charts - which I think is why gold is good for me. But I am into politics and history. Short term, charts may tell us something about POG, but for the longer story, gold is about world events. World events are dominating markets at the moment. To know when to get out of gold (if you are that way inclined) read the 'World' or 'politics' sections of the newspapers; not the business column (for market data) - is my little tip (worthless as it most likely is. I mean my parents won't even listen to me over their big bank financial planner, so I don't think that anyone else should).

- pug