finally ready to blast higher, page-94

"Global currency debasement = loss of currency purchasing power."

SP, what I'm suggesting is that bullion will outperform other hard assets in anticipation of the inflation that is coming down the track... a period of negative interest rates that we've now just entered as we did in late 2000/2001... gold stocks should do very well (as they did when gold rose from $250-$400 in 2001-03) due to benign cost inflation. I think we'll see Jim Sinclair's number in this period.

But once the inflation actually arrives, and it's obvious to everyone that it has arrived (banks are lending, salaries are rising etc) then commodity equities will become a better play. Even if gold then surges to Alf Field's numbers, gold equities may not provide the same returns. This is what happened from 2004-08 even as gold rose from $400 to $1000 (surging input costs), and presumably post the 1930s depression too.

Gold stocks would probably do very poorly during hyperinflation.

Rowingboat