Regarding Gold:
The wave of deflation will take down ALL assets with it: Equities, commodities, property, bonds etc.
The relative safe haven is cash and for now USD for this reason.
Billions of dollars of credit and debt swim around the globe daily in "the markets". There are untold billions of debt that is DENOMINATED in USD, by far the largest slice of ALL debt, and as that debt is liquidated- via margin calls, withdrawals from funds- you name it- the demand on dollars USD to service that debt will put enormous upward pressure on the greenback- it will appreciate
RELATIVE to all other currencies.
Ultimately the USD is dead in the water but that day is a good couple of years off yet, or more. The collapse of the USD will occur concurrently with the Collapse of the US as ANY sort of world power.
And history is full of tales of the fight country's and empires put up before their "head" finally rolls.
Also- just because the USD rallies does NOT therefore make gold decline, they are different markets that beat to their own drum.
Long term I too think gold will excel-but not before a wave of selling off via aforementioned asset DEFLATION.
Cheers
Monster
PS As an aside, only a year ago I stated that Barack Obama would serve only one term of office and be regarded in history as the big villain who presided over America's Second and Greatest Depression.
I said that because this wave of deflation was set in motion well before he reached office and was unstoppable-delayable, perhaps-unstoppable-NO.
He's merely the guy in the chair at the time. Next elections for the US will come around the Bottom-ish of this great Bear Market and he'll (wrongly) be held accountable. The pessimism extant in society wll demand it.
