[quote=stockstradr]Gold on front page of NYT (and same story in other news media) is why I dumped all my gold several months ago.
I’ll risk later ridicule and make three predictions:
1) Gold will hit $800/ounce before it hits $2000/ounce.
2) When that happens – probably within 12 months – then I’ll back up my truck and load up portfolio with gold.
3) Within five years we see $3,000/ounce.
We are still in a strongly deflationary recession with deflation about to enter nasty second leg down. I say you do not want to hold gold in near term.[/quote]
stocktradr, if I remember correctly, you have a pretty good track record with the markets, so I’d like to hear why you think we are in a deflationary environment. By most accounts, our economy is now expanding at around a 3% rate, employment recovering slowly but surely, and housing will find its bottom this year. Doesn’t this predict inflation instead of deflation? What do you see hitting us that would be deflationary?
