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re: Gold: It's basically f'd

Posted on 2/25/11 at 7:06 pm to
Posted by TheHiddenFlask
The Welsh red light district
Member since Jul 2008
18384 posts
Posted on 2/25/11 at 7:06 pm to
quote:

as the dollar continues to devalue, gold and silver will go up in price


Thanks, I forgot all about remedial economics.

Would you like to point out the intricacies of the drivers of inflation?

Also, why is gold superior to TIPS?

Also, if you believe gold is going to be driven by inflation, why is it superior to just shorting the dollar in the futures market, or shorting interest rate futures?

Please, I beg you, enlighten me.
Posted by tagatose
South Carolina
Member since Oct 2005
2008 posts
Posted on 2/25/11 at 9:19 pm to
Because I don't trust (/understand) this system anymore. Do you?
This post was edited on 2/25/11 at 9:22 pm
Posted by saint308
LA
Member since Oct 2010
496 posts
Posted on 2/25/11 at 9:48 pm to
quote:

Also, why is gold superior to TIPS?


Serious question here. With TIPS the increase in value so to speak is based upon the CPI. However, the CPI does not include energy or food. I know my gas cost has risen a bunch. I have a 28 month old girl and milk has gone from 3.59 to 4.29 in the last 2 years. So to me TIPS are getting screwed. Why wouldn't you be better off buying rising rate funds and shorting the Lehman bond index?
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