|
|
|
|
|
The Case For Gold
|
|
 |
This Link is located in the Public Channel Housing Bubble and Bear Links.
Posted by ian 1 year 339 days ago (gold-eagle.com). Views: 76
Tags: economics gold inflation wall street |
| Related Tags: finance stocks business video politics forbes infesting credit crisis |
The argument for gold now is the same as it was in the early 1970s. Gold, and other commodities, are coming off a giant oversold condition. Over the ‘70s, gold multiplied by a factor of 25 times. What will happen during this swing of the pendulum cannot, as yet, be predicted. But it is likely to be quite similar.
Take the establishment supporter who bought stocks in 1966. It was the recognized “wisdom” of that day to buy “good, sound stocks for the long pull.” They laughed at the foolish gold bugs buying gold stocks with the price of the metal at $35/oz. Gold, after all, was a collectable. This situation is repeating in our day. The same forces which pushed gold upward then are pushing it upward now. The ethanol bill plays the role of the Russian wheat deal. The establishment type who buys “good, sound stocks for the long pull” today is quite likely to sit through a 70% decline in real terms over the next dozen or so years.
We all know what the establishment did in the 1970s. When gold raced over $800 in January 1980, they said, “We will pretend that this whole affair never happened. It is too embarrassing to admit that we were wrong and the gold bugs were right.” Those who do not learn from history are condemned to repeat it. And repeat it (the seventies) they are.
View Original Article
< Prev Item | Next Item >
|
|
|
|
|
|
