This fellow’s pretzel logic won’t save him. Oil is increasing in price! Wow! The only problem is, the price of oil has deflated 57% from its’ last high. Even a huge oil spill and a moratorium on drilling in the GOM had no effect on the price. (I do think oil is a good investment, just bought some CVX.)
I got out of Treasuries some time back as I was worried about them too. That was a mistake, cost me some easy and safe profits.
We are seeing inflation in everyday products like food, and deflation in assets. That’s perhaps the worst scenario possible other than outright hyperinflation. But in hyperinflation, the cost of all things increases by orders of magnitude daily. We are nowhere near that. In hyperinflation, the price of gasoline would go from $3.00 a gallon on Monday morning to $200 a gallon by Noon. By evening the price would be $1,000 a gallon. THAT’S hyperinflation.
We have overcapacity in almost all areas of production. We have high unemployment and low demand for goods. That is not a recipe for hyperinflation. I’m not sure why people seem to long for hyperinflation, but they do. I don’t think they are going to get it.
Most don't start out that way. Economic uncertainty drove them to purchase gold, silver, etcetera. They want their investments to do well. Apocalyptic economic prognostications begin to appeal.
It's a slow process, morphing into the stereotype that is derided as a "gold bug" in certain quarters. And, it's a pity, watching it happen to otherwise sane and steady people. That's not to say that an investment in precious metals hasn't been a good one since the start of this decade, far from it. But, that doesn't appear to be enough for some.
So, we get gold porn like this, coming oddly enough from people looking to sell gold. I waver back and forth. I have some precious metals myself, and am glad it's paying off. But, I don't think I'll be dancing in the streets if it rapidly quintupled in value because of some dire economic development. I'll have big problems in that eventuality, that a vastly more valuable investment won't solve. And, so will everybody else. It's nothing to cheer about.