>> heading higher into Uncle Al's (created) headwind...
<<
But gold's tailwind will be stronger. Producer buybacks, bullion bank buybacks, higher investor demand (will outpace reduce jewerly buying), and I'm predicting that some CB's will begin to buy back gold reserves before it's over. That's been the pattern with all the gold runs in the past 100 years. They sell at the bottom and hoard at the top. If the Malaysian Dinar goes into circulation then gold will have a HUGE tailwind.
Also, easy Al wants to show that deflation is no threat. He'd rather have $400 gold than $250 to show that USA will not fall into Japan's trap. The Fed knows how to tame inflation...it can do little about deflation once it takes root.
Long KGC, PAAS, BGO, MNG
JMHO.
