Invest Gold Stocks
Is this a good time to invest in Gold producers stocks?
That depends on whether you think we will get inflation or deflation. I think we will get the latter. As a result of my bias, it is very easy for me to find evidence of this:
- house prices still falling
- gas prices are coming down, even during the peak driving season
- savings rate is up
Here’s a deflation sign that the mai nstream news competely missed: in current dollar value (not accounting for inflation/deflation), the GDP actually dropped *more* than expected. The better than expected real GDP number was a result of lower than expected inflation: almost 0, actually.
http://biz.yahoo.com/c/ec/200931.html
Expectations: -1.5% real GDP + 1.0% chain deflator =
-0.5% current dollar GDP
Actual: -1% real GDP + 0.2% chain deflator =
-0.8% current dollar GDP
This is akin to your salary dropping more than you expected, but your buying power dropped less than you expected because prices rose less than you thouhgt they would.
So my opinion is that this is a good time to SELL gold. We’ll see if the stock market can stay up through the Fall.
Kitco Audio: Big Al and Marshall Berol see Gold Stocks Lagging Behind Spot
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2585 Gold mining oil stock investment poster 1937 Kolman Grubsakes Texas Col. $86.00 |
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How to Invest in Gold Stocks and Avoid the Pitfalls by Donald J. Hoppe (1972,… $9.98 |
