re: Opinions on market direction considering economy, margin debt, & valuation

quote:

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Why would deflation keep precious metal prices up?

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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