muses of the moment

November 11, 2009

Gold is a good investment in deflation or inflation during the K wave winter cycle

Clif Droke wrote an interesting article November 6, 2009 entitled Gold at both ends of the economic K Wave.

Click here for the full article.

The similarities between today’s market behavior and that of 1999 are self evident.  The difference is that this time gold is in a secular bull market and heading into the final years of long wave hyper-deflation (economic winter).  As we’ve talked about previously, gold tends to benefit strongly on both ends of the economic K Wave: both from hyper-inflation and from hyper-deflation.  This is one of the things that makes gold so unique among all other financial assets categories. 

Side musing: I usually don’t post Martin Armstrong’s letters regarding his continued incarceration, so here is a link to those letters if you would like to learn more. Click here.

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