- the end of gold - , page-15

G'day Pug,

I'm glad I brighten your day.

Couple of things -

* I don't believe the article at all.

* This is not deflation (which is due to a contraction of the money supply without corresponding contraction of production). The money supply is increasing by hundreds of billions of dollars every month (week?), and that has got to be inflationary - it simply hasn't shown up yet. It will, and with a vengeance.

This current 'deflation' is simply falling prices due to oversupply/underdemand. (In fact the things we don't need eg plasma screens are falling, the things we do eg food, health etc are markedly rising.)

* I hold physical gold and silver, and a small parcel of DOM. Nothing else. I've never lost my faith/belief in gold since developing it in 1998/9. I will eventually sell and buy into a few decent battered companies in the years to come, but there's a long ride ahead and generally upwards for mine.

cheers

dub