From today's Mogambo Guru, the angriest economist in the world...
Mogambo sez: For those of you who question my smarts ("You're an idiot!")
and wave your little clinical reports around ("And I can prove it!") when
I say that gold will explode upward in price because gold ALWAYS explodes
upwards in price in the bust that follows the boom, I present the
MarketWatch.com headline, "Gold rises on safe-haven buying, dollar
weakness."
This is how it always is at the beginning of the bust after the long boom;
people get tired of running back and forth between stocks and bonds when
they seem to lose money every time as both stocks and bonds will trend
downward in price as the asset boom deflates and consumer prices rise, and
they finally say, "I'm getting slaughtered here! To hell with this! I'll
buy what people always bought at times like these, when stocks are
overpriced, and bonds are overpriced, and houses are overpriced, and
government spending and size is huge, and everyone is up to their ears in
debt, and there is nowhere else to go; I'll buy precious metals!"
That's why I know, with absolutely no doubt in my mind whatsoever, that
the big moves in gold and silver are ahead. It's how history repeats
itself. And it always does, as it seemingly must.