Gold and silver physical prices can catch up (or in this case down) to spot fairly readily. Big dealers just need to take delivery of short term paper futures. It’s still an unknown when the Fed’s inflation will turn the deflation around. One things for sure, they can’t “balance” monetary inflation and credit deflation. Either the monetary inflation gets swamped by deleveraging, or it takes over in very rapid asset inflation followed by yet another deflation.
You have hit the key point and my key concern? Is inflation a sure bet or could the massive amount of deflation absorb all of the new money the world can print. That is the $64 Trillion question. I know you are pretty well convinced that we are heading for a new round of inflation, but I am finding no consensus about that, with some very credible people predicting either side of the inflation/deflation debate.
Thanks for the gold lesson. I’m not really a gold bug. I want some for a disaster hedge is all. Maybe $10,000. Not as an invesment, but a storage of money in the VERY unlikely currency collapse scenario.
Thanks. I always appreciate your sound and reasonable advice and enlightening posts.