GOLD 0.51% $1,391.7 gold futures

gold heading for $ 300

  1. 1,605 Posts.
    I know there will be some here who will want to drown me out for posting this. I don't want to see you lose money:

    Time to short gold? Gold bulls may have a hard lesson in front of them as economy goes into deflation driven depression from stagflation

    What really happens when economy goes into deflation driven depression from stagflation? You have to go back and see the Japanese economy in the last eighteen years. You can also look at 1929-34 economies. Every time, people sense economic collapse and run towards gold with a real hope that Gold will go to heaven. The gold bulls come out and start proclaiming their victory. That is exactly what is happening now.

    Deflation is worst for gold market while stagflation is the best for it. If the economy goes into deflation driven depression gold will plummet into $300 an ounce and take Dow to 3000. A ten to one ratio is normal during sever recessions and depression.

    The dollar will fall and gold will rise. But that temporary effect will reverse as it becomes evident that deflation is the root cause of the trouble. The US economy will collapse but will perform far better than the rest of the world especially Asia.

    Please take heed while you can.

    Cheers, Skip
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