- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Opinions on market direction considering economy, margin debt, & valuation
Posted on 1/14/15 at 8:30 pm to Iowa Golfer
Posted on 1/14/15 at 8:30 pm to Iowa Golfer
quote:Why would deflation keep precious metal prices up?
Deflation will likely prop up my precious metals.
Posted on 1/14/15 at 9:01 pm to LSURussian
Because this time I don't see deflation necessarily increasing purchasing power. What these experts are predicting and calling deflation isn't deflation as it is defined. Based on the articles that came out the last several days. Some articles have been coming out previously, but recently a lot of deflation articles started popping up in a greater number.
It would have an opposite effect. I think it already has the last couple of trading days. I wouldn't call it a trend, but there was a fairly significant jump intraday gold Monday I think. By their definition, they're not just predicting deflation, but already calling it that.
There are some economists that argue holding gold during deflationary periods (because gold and cash are unhinged) would increase operational wealth. It's a long winded argument, and they, like every other expert pushing their thesis pick and choose time periods. The most interesting to me is when they talk about holding pm's between 1920-1933, hardly a period of inflation. And an interesting end result for those that held some pm's in their portfolios. Of course we were on the gold standard then.
It would have an opposite effect. I think it already has the last couple of trading days. I wouldn't call it a trend, but there was a fairly significant jump intraday gold Monday I think. By their definition, they're not just predicting deflation, but already calling it that.
There are some economists that argue holding gold during deflationary periods (because gold and cash are unhinged) would increase operational wealth. It's a long winded argument, and they, like every other expert pushing their thesis pick and choose time periods. The most interesting to me is when they talk about holding pm's between 1920-1933, hardly a period of inflation. And an interesting end result for those that held some pm's in their portfolios. Of course we were on the gold standard then.
This post was edited on 1/14/15 at 9:04 pm
Posted on 1/15/15 at 4:00 am to LSURussian
quote:
Why would deflation keep precious metal prices up?
I also don't follow this. Inflation or deflation are only descriptions of the value of the U.S. dollar versus various commodities. If the dollar is strong versus most other commodities (low inflation or deflation), I don't see how it would be weak vs gold or other precious metals unless some external factors (foreign demand for metals and not other commodities, shortages, etc).
Considering continued low interest rates and an incredible excess of cash (oversupply), I can't see how the dollar won't fall in value relative to metals or any commodity (inflation) in coming years.
The only way I can see higher PM prices is people bailing on the stock market when it falters and pushing up PM prices with all the excess cash around...which I guess could make some sense.
never mind
Popular
Back to top
Follow TigerDroppings for LSU Football News