C'mon, the guys in the gold pits can get hurt, NOT guys like us.
The gold pit traders are the ones buying a million electronic ounces at a clip and flipping them to pick up a few pennies on the move. They will get hurt when it dives to $1,200.
Now, I recently bought four ounces at $1,600. I bought 120 ounces of silver at $30. Am I "hurting"?
No. I am not in the market! I am in the group that will buy an ounce every other month, whenever there I've got some extra cash to put away.
Schiff is right: the inflation is coming because there is no way to ever reel in these trillions the Fed created. Ben is playing a weird game of creating money, giving it to banks and then paying them to park it at the Fed, so as not to create inflation.
But for what? To create "liquidity"? What good is liquidity if the banks don't want to lend because everything is riskier than parking at the Fed and getting paid for it??
This is a Japanese trap. It could go on for another decade or more. But the QE dam is springing leaks. Inflation is showing up in diverse places, primarily in shrinking product sizes, like it did in the early 1980s.
And it will get worse. QE will never end, because it will be needed to finance the deficit PERMANENTLY. So, buying gold is a long-term strategy for wage-earning joe averages like me.
A stock market bubble can pop tomorrow and ruin every pension plan and 401k portfolio, throwing the QE floodgates open. Or, we can bump along for the next 15 years in droll anguish.
But gold will always be gold, and will be worth more in the future. Bernanke's guaranteed it!
"Cowards & idiots can come along for the ride but they gotta sit in the back seat!"
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