what to buy if inflation returns

Discussion in 'Economics' started by billyjoerob, Aug 6, 2012.

  1. BRK.A/GLD
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    #41     Aug 7, 2012
  2. SPY/GLD
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    #42     Aug 7, 2012
  3. FXF/GLD (swiss franc to gold)
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    #43     Aug 7, 2012
  4. JNK/GLD
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    #44     Aug 7, 2012
  5. IYR/GLD
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    #45     Aug 7, 2012
  6. that's cool fickletrader, you know what's happened, and have the charts to prove it
     
    #46     Aug 7, 2012
  7. ;-) Let me know if there's a ratio graph you want me to render.
     
    #47     Aug 7, 2012
  8. you know you are old when you start thinking more about the past than the future
     
    #48     Aug 7, 2012
  9. No, you don't know what I already knew, sorry. Here's the problem for the gold bulls: THE RALLY ALREADY HAPPENED. It might last for a blow-off top, but the gold rally already happened. When the inflation arrives, the gold bulls are going to sit and wait for the RALLY THAT ALREADY HAPPENED. Meanwhile, interest rates will rise from the current low of 0%, destroying gold as savers find relief in interest bearing assets. Gold is not an inflation hedge, it's a deflation hedge. That's why we've had an 11 year gold rally in the midst of the total collapse of the long bond. What is it about the facts staring the gold bugs in the face that they can't see.
     
    #49     Aug 7, 2012
  10. sprstpd

    sprstpd

    It's possible that you are right, but it's possible you are wrong. I would say that there has never been any deflation in the last 11 years so your central premise is invalid.
     
    #50     Aug 7, 2012