Posted on 07/27/2011 1:31:27 PM PDT by SeekAndFind
The worldwide gold market is small. Much smaller than bonds or stocks. Thus money flowing into this market can make it shoot upwards during an inflation or deflation. All depends on the events and the market psychology. America could have a deflation but gold is pushed upward by international buyers who are experiencing inflation
That’s good news. Few are so lucky.
I’d say buy silver. If USA fiscal house gets in order, it may go down, but it is used for many things, and inflation will eventually restore whatever value might be lost.
If things get worse, and a financial collapse happens, a bunch of silver eagles would be better to redeem, than Gold.
I would rather carry a silver eagle worth $40 in my pocket than an oz. of gold @ $1600.00.
——Compared to the dollar and euro, the Swiss franc looks incredibly safe, ——
Last Week or so, John Maudlin reported on a conference in Switzerland. The visit was expensive. A Diet Coke cost him $12!!
Then there is the opposite problem if you own gold, or gold stocks. Should you sell? Is gold at the top? Then if you do sell, what are you going to do with the proceeds? Buy Ammo? : )
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