Commodity Trade Mantra

Posts Tagged ‘Debts’

Hurts So Good: When Exactly Are Falling Prices Bad?

Though a cause for celebration to the layman, economists argue that falling prices will harm business and lead to unemployment. Falling consumer prices are good for the consumer & the economy, but they are bad for central banks looking to maintain asset bubbles and for governments looking for a graceful way to renege on their debts.

Gold and Deflation: History Shows That Conventional Wisdom is Wrong!

Deflation is a disaster for those who are indebted because the dollars needed to repay those debts are deflating away, making the debt ever-harder to pay off. Since people have no faith in fiat currency, they demand a proven store of value. Until the mentality of man changes, gold will always have intrinsic value as a replacement currency.

Get Your Money Out of Banks & into Something Tangible: GOLD

The most important factor right now is the physical shortage of gold. The declining amounts of gold in Shanghai storage suggest we are getting close. So I expect something to happen in the physical gold markets soon. When people finally decide they want to buy gold, there probably won’t be any gold.

The Silver Sentiment Cycle

As a reminder, after silver rallied to the then astounding price of $6.40 in early 1974, it crashed back to $3.80 and then traded sideways for 2 years. Less than 3 years later it had briefly traded at $50.00, due to a combination of inflation, debt and deficits, political issues, conflict with the USSR, fear, a market corner, and dollar weakness.

It turns out you can have BOTH - Inflation and Deflation

People who are severely in debt benefit substantially from inflation. Inflation erodes the principle value of a loan until eventually the entire debt simply inflates away. So who benefits the most these days from having their debts inflated away? Governments & Banks – Neither of these players wants to see deflation.

The Screaming Fundamentals For Owning Gold

Various factors lead me to conclude that gold is one investment that you can park for the next 10 or 20 years, confident that it will perform well. Timing and logic for both entering and finally exiting gold as an investment are laid out in the full report. – Gold’s largest gains remain yet to be realized.

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