Zeev's Turnips Patch-No Politics (ZEEV)

[Babylon]

Thanks for the reply Mlsoft, I always enjoy your analogies (like the quicksand one this time). I do have a direct question for you if you don't mind. If, as it seems to appear, we are in, or going into a deflationary period (AG's walk is telling here), what is the longer-term premise of being bullish on Gold? The only reason I can see personally is the ultimately inflationary impact of the current dollar situation....but I'm not so certain how long that will take to be reflected in the miners (perhaps it has to some extent with the current price discounting several months out). The other reason (Ok, that's two now) is the "safety" net, which unless there are obvious inflationary pressures, seem to be very temporary in the duration of time, and would present themself better as trades than LT investments.

In a deflationary circumstance I don't see anything really safe in its wake....unless the Fed is sucessful in their attempts in reflating. The downside risk IMO is they don't succeed and all the babies (hard assest) go down. So isn't the bet really being placed on their success? Your thoughts on this would be appreciated when you have a moment. TIA