Still a Gold Bug

“It looks like there are finally some signs of recovery in the US,” said more than one person we talked to last night.

The occasion was a cocktail party…held on the grounds of a stately chateau. The summer social season is underway in Poitou. We are attending dinners, plays, cocktail receptions, barbecues and weddings.

Last night, waiters in tuxedos passed out champagne, foie gras canapés, and desserts while hundreds of guests milled about and talked.

“You might want to hedge your bets on this recovery,” we told one Markets and Money reader. “It’s probably not going to work out.”

“But I’m confused about something,” he continued. “You’ve been urging me to buy gold for years. And now you seem to be changing your mind.”

“No…no…not at all. I’m still a gold bug. It’s just that I expect this rebound to end…and for stocks to go down, possibly down a lot. The dollar is what people want when they are frightened. The dollar is going down now because they think there’s no longer anything to be frightened about. But when this recovery disappoints them, investors are going to be more frightened than ever. Because they’ll realize that we’re faced with a depression…and that the feds can’t do anything about it. They’re going to rush to the safety of dollars…at least for a while. Probably long enough to shake out a lot of gold buyers.”

Until tomorrow,

Bill Bonner
for Markets and Money

Bill Bonner

Bill Bonner

Since founding Agora Inc. in 1979, Bill Bonner has found success and garnered camaraderie in numerous communities and industries. A man of many talents, his entrepreneurial savvy, unique writings, philanthropic undertakings, and preservationist activities have all been recognized and awarded by some of America’s most respected authorities. Along with Addison Wiggin, his friend and colleague, Bill has written two New York Times best-selling books, Financial Reckoning Day and Empire of Debt. Both works have been critically acclaimed internationally. With political journalist Lila Rajiva, he wrote his third New York Times best-selling book, Mobs, Messiahs and Markets, which offers concrete advice on how to avoid the public spectacle of modern finance. Since 1999, Bill has been a daily contributor and the driving force behind Markets and Money.
Bill Bonner

Latest posts by Bill Bonner (see all)

Leave a Reply

7 Comments on "Still a Gold Bug"

Notify of
avatar
Sort by:   newest | oldest | most voted
Pete
Guest

“They’re going to rush to the safety of dollars…at least for a while. Probably long enough to shake out a lot of gold buyers.”

What does that mean? Shake out? As in deter, or bring forth new ones?

Greg Atkinson
Guest

Nice idea from Bill if you are worried about your U.S. dollars, but not such a great idea if you look at gold in $AUD terms.

Lachlan
Guest

Theres definately something about to happen the way USDX and commodities (gold,silver and oil) are shaping up (IMO). Which way, who knows. Maybe one last crazy up (for the commods) before another down. Either way the money makers are still hard at work.

Pete
Guest

Haha I got voted down for a question

Ned S
Guest

I just voted you up Pete – Smile!!! I reckon BB meant “deter” myself?

Jason
Guest

I think what he means Pete is that if people rush to the US dollar, the US dollar will strengthen like it did last year, which means that Gold when priced in US dollars will weaken, will go down. This will scare some gold holders to liquidate there metal.

Pete
Guest

Makes sense, thanks Jason :)

wpDiscuz
Letters will be edited for clarity, punctuation, spelling and length. Abusive or off-topic comments will not be posted. We will not post all comments.
If you would prefer to email the editor, you can do so by sending an email to letters@marketsandmoney.com.au