Zeev's Turnips Patch-No Politics (ZEEV)

[CoalTrain]

No disagreement here, I have been "preaching" the failure of the Euro if monetary and fiscal policy are not working in tandem. Since the EU yielded its monetary reins to a bunch of bureaucrats but each state still determines its own fiscal policy (with external constraints on deficit sizes which is going to cause huge political tension in the Union), I see social chaos ahead.


Don't you think that this will be bullish for gold? I know two bullion dealers in central California that have been in bussiness for more than 25 years. Both coin shops that do a lot of Bullion bussiness. They have three reasons for being Bullish in precious metals.

1)the don't buy the deflation argument. They think inflation will go ape sooner or later, neither think it will happen next week <g>.
2) They say the tape action ( a dealer to dealer system that I do not know much about, not wall street ) and availability of physical gold for their customers is looking stronger than it did in the last run up to $800. Sales doubled after last Christmas. A year and a half ago they said you could not give away the silver 100 oz englehardt bars. The last run up to $4.90 in silver they were having a very hard time getting them for more than a week.
3) They think EU is doomed and when it falls all of Europe will at least temporarily be looking to gold as an economic anchor.

I would not have a clue about number 2 but 1 and 3 I buy and I think how nutz gold goes has a lot to do with how and when Eu falls apart in relation to the other bubbles and troulbles in the world today.

See my post on gypsies and banana's <g>

http://www.investorshub.com/boards/read_msg.asp?message_id=1160294

CT