Friday, November 28, 2014

Inflation or Deflation?

If you want to know if inflation or deflation is going to "win", just look at the following chart:

The truth is, before deflation completely wipes out the asset base of the banks, especially the Federal Reserve, the dollar will need to be devalued against gold or the monetary system will need to be entirely reformed.

The winner? Gold. Fear will drive the masses into gold.

So in the short term I'd recommend picking up some DUST before the weekend. Most likely the Swiss referendum will not pass. It's just where we are in time. Most populations across the world are completely financially illiterate. Gold will probably get hit hard next week so watch your position closely. If we hit $1,000 I'll sell half my position and see if we hit $900. If we hit that I'll get out completely.

I'm not a financial adviser. The DUST position is simply to hedge my miner portfolio.

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