qcomer, you make very good points, and I don’t own any gold, because both investment services to which I subscribe are saying it is too high priced. Chris Johnston is also confirming this for us.
iTulip.com, one of the premier blogs on the asset bubbles, is bullish on gold long-term. The founder is a rich venture capitalist, who went public with the tech bubble in late 1990’s. Read his KaPoom Theory, about the hyperinflation and deflation, and reasons for holding gold. It’s compelling, and convincing to me.
I’m also getting an options account, so I can buy QQQQ puts, and I want to get an inverse fund. Do you know anything about Rydex funds? I know that Profunds Inverse funds are a scam, as they track the index that they are supposed to “un-track”. How they get away with that, is beyond me!
So while you think inflation will fall, I think it will rise. The Fed controls inflation via interest rates AND money supply. Money supply is growing, both because Fed is printing lots of it to pay off interest on the debt, entitlements, war, and second because foreigners are investing lots of dollars back into our economy.
The Fed will lower interest rates, but they will keep printing money, just as they are doing now. As long as they print money, inflation will rise. I can’t prove they are printing money, because they stopped publishing money supply this spring. How convenient for them!
