Wednesday, May 19, 2010
Gold Prices Dip as Investors Go for Cash
Gold is falling because the forces at play right now are deflationary--big time deflationary.
But so many investors have bought into this ridiculous "hyperinflation" theme because they've seen reserves increase as central banks have brought rates down or conducted quantitative easing. The hyperinflation view is simply wrong.
I am certain that investors in gold will be decimated. I don't know when, but it's pretty much a sure thing. The best investment in the world right now is a Treasury, which will soar as deflationary forces broaden out even further.