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Re: Rocky05 post# 24955

Saturday, 12/24/2011 10:16:24 AM

Saturday, December 24, 2011 10:16:24 AM

Post# of 162603
A little more on the subject:

http://www.jsmineset.com/

"Summary

We remain bullish on gold, U.S. stocks, wheat, and Canadian, and Singapore dollars. The logic behind these picks is simple.

Wheat and other grains will rise in price long term due to 1) wealth creation in the emerging world increasing the demand for more protein and a more substantial diet, and 2) historically low carried forward storage [inventories] of grains worldwide.

The Singapore and Canadian economies are more rationally managed than the U.S. dollar. Their currency values should reflect their better management by appreciating against the U.S. dollar. The U.S. dollar temporarily rises during coming periods of fear as some see it as a relative safe haven. Eventually, investors will realize that the U.S. Government is doing nothing to address the deficit spending and taxation issues plaguing the country. As attention increasingly focuses on this fundamental failure, we believe that the US dollar will decline against these two currencies.

Gold should rise as investors come to the realization that gold is a valuable asset to store and protect wealth during periods of inflation or recession. Whichever economic environment persists, the value of gold will be driven by the efforts of central banks to create liquidity and debase fiat currencies.

Presently, the developed world has a deleveraging banking system. The deleveraging is very painful. So, in order to impress voters and stimulate economic activity, politicians and central bankers are under heavy pressure to create liquidity via various mechanisms. Most of these mechanisms create money and thus create excess currency. Excess currency creation drives gold higher. As we learn in basic economics, an increase in supply while demand stays constant will lead to a lower value for whatever has increased in supply. To say it another way is that as the supply of world currencies increases, their values fall…and gold rises.

Today, some investors believe that the U.S. dollar is rising in price. This is not correct; the U.S. dollar is rising in price only versus even weaker currencies. The dollar’s buying power is falling, and has been falling for decades. In this situation, demand for gold is buoyed as gold is used as a mechanism to maintain the buying power of one’s assets.

We want to take this opportunity to thank all of you, our readers for your attention and valuable input in 2011. We wish each of you a wonderful holiday season and a happy, prosperous new year, and we look forward hearing from you in 2012."

Also:

http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/12/23_Jim_Sinclair.html

All my statements are expressions of opinion and are not meant to be either
investment advice or a solicitation or recommendation to buy, sell, or hold securities.