GOLDBUGS AMEX Goldbugs Index (GOLD)

[al44]

I think the other Weiss you have heard of is his father. He was in this years ago. I don't know his status as of now. I've read a lot from Weiss over the past few years and he usually has a good handle on things. On this particular piece he was the interviewer. I couldn't really say if he totally agreed with the opinions presented. I know I didn't. But neither do I discount opinions in disagreement with my own. I think we are in a period of deflation right now. I also don't think it will last long. Real estate has a long way to go before hitting bottom, but that won't affect prices of consumer goods. Governments fear deflation far more than inflation and will print however much it takes to avoid it. I (always) am keeping my eye close to gold. So far it hasn't been affected much by what is happening. I don't think an extreme deflationary period will affect the POG too much either. Too many peoples worldwide would jump all over gold at much lower prices. There is just not much trust left in the financial systems that are imploding all over. Investors may be going into dollar denominated bonds right now at almost 0% interest as a safe haven. How fast do you think they will be exiting those positions when in addition to no interest earnings, the purchasing power is steadily eroding. Short term prospects for the dollar may seem appealing to some. Long term I see nothing but bad news.

...........al