Bill Fleckenstein wrote a thoughtful piece today on the heels of gold getting smacked around, as has been its wont.
(To be noted up front: I have been completely and utterly wrong lately, lest anyone think I am trying to avoid the obvious. My predictions of $2,000 gold, the call positions I put on, all of it…WRONG, WRONG, WRONG!!)
He notes that we see the ingredients that led to the previous two bubbles front and center again, so invariably we will end up in the same place. And that’s kind of the point here. It’s what I was trying to get at with my post about Krugman yesterday. The economists and central planners who run this spot always default to the same solutions and remedies. Even when a sample size in the trillions of dollars doesn’t get the desired result. Eventually it catches up to us and inflation gets out of control and markets go haywire. All of which plays into the hands of gold.
Or so I’m banking on.
One last thing – Marc Faber is definitely a smart guy. The next time he writes that gold will correct down to $1,550 or so (and he did it for months on end), I’ll defer to his wisdom and experience on the subject.
