Comments on: When People Fear Inflation or a Falling Dollar They Find Refuge in Gold http://www.dailyreckoning.com.au/when-people-fear-inflation-or-a-falling-dollar-they-find-refuge-in-gold/2009/10/05/ An independent perspective on the Australian and global investment markets Fri, 12 Mar 2010 02:01:44 -0600 http://wordpress.org/?v=2.8 hourly 1 By: Ned S http://www.dailyreckoning.com.au/when-people-fear-inflation-or-a-falling-dollar-they-find-refuge-in-gold/2009/10/05/comment-page-1/#comment-104497 Ned S Mon, 05 Oct 2009 10:12:45 +0000 http://www.dailyreckoning.com.au/?p=7151#comment-104497 Gold as something that might spike a lot IF the Middle East (or somewhere else?) blows up - Only if it affects oil. And only then to the extent it provokes long term fear - With such fear being minimal given the sure expectation that NATO/the US will jump in - Things ARE different (in that regard this time around people) because the USSR is dead. Gold as the future basis of all fiat currency worldwide - Roll me over and tickle me ribs while I wet myself and feel the tingly sensation as it runs down my inner thigh and laugh out loud - As in it AIN'T GUNNA happen - Smile! (Call it a 1 to 2% long shot if you like things quantified maybe?) Gold as an inflation hedge - Fine by me. Just depends how long you intend to hold it and how much inflation you are expecting in that time given that gold is probably a minimum of 20% overpriced versus even the USD right now. Gold as something that might spike a lot IF the Middle East (or somewhere else?) blows up - Only if it affects oil. And only then to the extent it provokes long term fear - With such fear being minimal given the sure expectation that NATO/the US will jump in - Things ARE different (in that regard this time around people) because the USSR is dead.

Gold as the future basis of all fiat currency worldwide - Roll me over and tickle me ribs while I wet myself and feel the tingly sensation as it runs down my inner thigh and laugh out loud - As in it AIN'T GUNNA happen - Smile! (Call it a 1 to 2% long shot if you like things quantified maybe?)

Gold as an inflation hedge - Fine by me. Just depends how long you intend to hold it and how much inflation you are expecting in that time given that gold is probably a minimum of 20% overpriced versus even the USD right now.

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