Wednesday, December 2, 2009

Interview With Prechter

Mr. Deflation, Robert Prechter of EW whom I am not really a fan of ADMITS that Gold is real money and people should own gold and silver coin:

Also, from Rick Ackerman on what to look for as far as Gold junior stocks:


  1. I dunno if Prechter has ever really been a gold bear.. Even under deflation as he envisions, gold as a buy-and-hold investment would always be a good choice.

    I'm on the fence, deflation seems possible depending on how much of the money being printed has ended up or will end up in a "black hole".

    If you print say $100B propping up a company, or buying it's "assets" how much nominal "money" has actually been "created" if that company still can't be liquidated for $100B? If you spend $100bil just to get a company to break-even $0, all the money you just printed was already on someone's balance sheet before you printed it.

    Thus perhaps the real inflation has already occured, inflation based on a lie, but still very real in it's effects. Bailouts don't add their face value of money to the system in practical terms because they just add money everyone thought was already there.

    At this point the velocity of money does become relevant to the prices of things. Of course no one knows exactly what these balance sheets all look like so whether the end result would be inflation or deflation-via-velocity is anyone's guess.

    Gold though does just fine in a deflationary depression for anyone with the guts to hang on. Inflation can be counted on to come back in a big way as soon just as it's too late to help the common people.

  2. Basically YES there will be real inflation, but we're already swimming in so much counterfeit inflation that if the fake stuff is now replaced with real stuff the water level for those actually swimming in it doesn't necessarily rise.

  3. Kli (et al.) ... it looks like is a quick & easy way to own physical gold. Any strong reasons to avoid GoldMoney?