Karl Denninger over at Market Ticker simply came out with his 2009 prediction overview bashing Gold and Robert Prechter has thought-about your entire run in Gold since 2000 some kind of weird Elliott Wave correction regardless of a 300% advance from the early 2000s. Deflation and Gold will not be incompatible and it seems odd to me that such seasoned commentators are blind to it. If the Dow to Gold ratio goes to 1:1 (i.e. the worth of 1 ounce of Gold will quickly equal the "value" of the Dow Jones Industrial Common), will you actually be sorry you bought Gold if all it does is dangle round $1,000/ounce and the Dow crashes to the 1,000 level? Anyone worth their salt would tell you that cash is king during deflation and gold is the purest and most accepted kind of money equal out there on the planet for the previous 2000 years. Authorities bonds pay possibly 0-3% yield, money within the bank and CDs pays the same, and all the things else loses cash. This is the beginning of a credit and debt bubble collapse and such occasions lead to deflationary depressions (and Kondratieff Winters if you are into cycles like I am).

The same people that say gold is an inflation hedge wish to say that gold is up due to concern and the market being down? The truth is, if the United States caught to its guns, it most likely would have misplaced all its Gold to the hoards of paper note-bearing European souls on the lookout for real money. The US Dollar Index closed at 81.21 on 12-31-2008 and is now at 80.26 (a small loss negated by a 1-2% yield over the past 6 months). If you happen to believe centuries of historical past comprise more knowledge than Bernanke and Obama or gold IRA companies McCain's brains, purchase some bodily gold as portfolio insurance and gold ira companies hope you don't need it (trace: you'll). Gold IRA fees: These gold IRA companies are in the business of making commissions on the treasured metals that they purchase for your IRA. The second technique includes opening a precious metals IRA. The S&P 500 went up 16 fold from 1980 to 2000. This time, a four fold gain over a decade in a hated asset nonetheless thought of worthless by the mainstream crowd is a bubble mania waiting to pop any second and take the Gold price back to Prechterite levels? I predict gold moves to new highs this spring, together with the pending inventory market rally that should start before the month is over.

The present secular bear market won't finish earlier than 2015-2020, so there's loads of time to get out of the final inventory market and change to what works. I personally really feel the ratio has a very good probability of going all the best way again to 1:1 this cycle (we're at 9:1 as of the close 5/13/09) and this expected ratio reversion alone makes Gold an amazing funding relative to stocks. Gold. The GLD ETF, gold ira companies however, would be an incredible and simple approach to confiscate Gold from U.S. What if the federal government decides to confiscate 401(k) and IRA accounts to fund the Federal deficit, as they've already begun to discuss behind closed doorways? It is because the worst cyclical bear market normally stocks most of us will see in our lifetimes has begun a new leg right down to re-take a look at the spring '09 and fall '08 lows, which may or could not hold. Remember that gold miners will fall with common stocks throughout the subsequent leg down of this cyclical bear market. The secular gold stock bull market started in 2000, the identical year the secular bear market in stocks started. As soon as the S&P 500 begins topping out, I will be trying to exit gold mining stocks.