Thursday, November 5, 2009

Prechter a bear on gold? Not quite.

A bear on gold when the rest are bullish - The Globe and Mail:

"But saying Mr. Prechter is bearish on gold may be putting it too strongly. The bearish label may have fit in past years but in a September interview with Financial Sense News Hour host Jim Puplava, he seemed to soften his stance somewhat.

Mr. Puplava asked if he wished he had changed anything in the second edition due out this month for his bestselling 2002 book, Conquer the Crash (all that's new is the addition of over 150 pages containing Elliott Wave Theorist commentary from 2003 to 2007 and updated lists of U.S. financial institutions and contact services). He replied:

“If I were to reconsider one comment it is the idea that gold would have difficulties during the [deflationary period] ….there was so much inflation from 2002 to 2008 that it ignited all the markets, most of which have since collapsed …. But gold is [now] holding up. It went up the least relative to everything else and so it's probably going to hold up pretty well during the deflationary drop. But I think it's going to disappoint the people who think its going to $5,000 or $10,000 an ounce. That may happen after deflation is over.”"

Aw shucks. It's not gonna reach $5000? that's considered bearish these days?

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