Tony 999Correct me if I'm wrong - i just read a recent 10 page...

Tony 999

Correct me if I'm wrong - i just read a recent 10 page newsletter by Prechter, and although he's a contrarian and believes in a stronger USD over the next 3 years as deflation and depression and 30% unemployment takes hold - he nevertheless believes in holding some gold at all times as he sees it as an essential part of a portfolio.

He sees gold as a lot less volatile than commodities - for instance he sees oil going to $10/barrel , the Dow falling below 1000 (even to 400) but gold maybe falling to USD$650/oz.

Also it's important to remember we are not in the USA - how will our own AUD perform in all this ?

Anyway Prechter hasn't got a monopoly on theorising we can theorise too ..

in my theory..In prechter's Armageddon scenario -
with the world markets tumbling to extreme low levels, and the commodities tumbling to zilch you could expect the AUD (a commodity based currency) to fall to 30 cents or lower to the strong USD.

So in this scenario that USD$650/oz could translate to a gold price of AUD$2000/oz ... not bad in an Armageddon scenario.

Anyway bottom line is Prechter suggests everyone should hold gold at all times - and in Australia (a commodity based economy) it may apply even more so in the Armageddon scenario.