[rohry]

Here is a post from Jim Sinclair challenging the Prechter crowd on the price of gold:

Thought you might like to read Sinclair versus Prechter:


From Jim:

There is a major error circulating amongst our Elliot friends. That is deflation is negative to gold. The primary anti-deflation tool to be used during periods of threatened or real deflation price-wise is GOLD. I am willing to say that if the point of capitulation of opinion for the Elliot (Prechter)School of thought is $400 an ounce, I am looking for Prechter true believers to make a legally binding wager.

I will wager in lots of $1000 up to 100 Elliot believers (total wager $100,000) that gold will trade at $401 in 2003. To book the wager fax me at 860 364 0673. I will send you a contract for signature. To give our Elliot colleagues a fair chance, I suggest that they read my recent Editorial carried on www.financialsense.com, www.tanrange.com & www.lemetropole.com titled " Gold, the Deflation Solution."

The Elliot Wave believers have not reviewed in detail the history of gold 1929-1940. May I suggest that you copy this gentlemanly challenge to the Elliot (Prechter) Doctrine and send a copy of it to all of the major Elliot web site and to Mr. Prechter himself. Mr. Prechter may wish to book the entire wager, himself.

Regards,
Jim

[4Americaslove]

I will wager in lots of $1000 up to 100 Elliot believers (total wager $100,000) that gold will trade at $401 in 2003.

-----

This bet is easy to win. The way I read it is that gold will trade at exactly $401 every minute of every day of 2003. It doesn't say during the year it will reach and/or surpass $401.

And I doubt the binding agreement states the wager in those terms.

[snopercod]

Only $401? I'm still waiting for the price of gold to get back up to $520 where I bought all those Krugerrands in the 80's. I just hope I don't die before I break even.

Food for thought Dept.:

"In the absence of the gold standard, there is no way to protect savings from confiscation through inflation... The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves...Deficit spending is simply a scheme for the 'hidden' confiscation of wealth. Gold stands in the way of this insidious process."

--Alan Greenspan, Gold and Economic Freedom July 1966, The Objectivest

It seems clear to me that the war on Iraq, the new Homeland Security Department, and all that will not be paid for via a tax increase. Neither will it be paid for via a booming economy. That only leaves the method of choice for politicians through the ages: Inflation.

[Tauzero]

"The primary anti-deflation tool to be used during periods of threatened or real deflation price-wise is GOLD."

Governments are always the last institution to react. By the time they do anything like restore the gold cover clause, the deflation will indeed be over.