Surviving the great deflation: $250/oz gold, $5/oz silver (Harry Dent)

Just an extract. See the linked article for the full interview. Is a Great American Reset really coming?

 

This bit in particular is interesting:

"People bought gold because central banks were printing money like drunken sailors and they reasoned that would cause inflation. But when the global financial bubble bursts, that destroys money, creates deflation and is bad for commodity prices and gold."

Anyone got an explanation on why this is so or if it is even correct?

 

Deflation is bad for gold... IF the wheels stay on the trolley

 

Who says ??? the last major deflation (1930's) was good for gold. Remember then dollar was gold and the gold was the $. We have not had a major deflation on a global scale since then so how do you know global deflation is bad for gold ? I think gold will do well in a global deflation. Prove me wrong :lol: :lol: Its all opinion and if you believe Harry Dent sell everything and put your cash in the bank. I don't think that will happen and this time they will print so much cash that any thought of deflation will be drowned out by the oceans of cash spewing out of the central banks. Watch and learn.....watch Japan and see the future. The Yen is good isn't it - Japanese now buying ... Wait for it......GOLD

 

Pretty sure The (categorical statement) Great Depression = wheels have come off the trolley

 

During inflation, or deflation it's good to have money.

 

You got to be kidding ? The next global economic crisis is going to be smooth and gentle like a herbal laxative. I have news for you this is going to be a massive bowl clearance followed by three caustic enemas. Seriously !!! wheels may more than wobble a bit hahaha

 

An answer to Harry Dent:

More at the link

 

BRING IT ON!!!

$5 silver
$250 gold

 

But seriously Dent was DOW 40,000 and now is all about deflation. He's always promoting extreme views and nothing he has said has come to pass. Who knows maybe one day.

 

I think the main flaw in Dent's argument is that he is using the Yankee Dollar as his yardstick. "Gold and silver will be down, cash in the bank is good to hold, etc." His scenario is possibly valid but his outcome is ludicrous. I think the best investment will be wheelbarrows for carting your fiat around, sell your wallet futures now.

Gold and silver will be the only yardstick left to measure wealth against.

 

Electronic virtual wheelbarrows with ATO tracking tags.

I still think my engineered currency reset idea has some legs: http://forums.silverstackers.com/to...nks-buying-gold-potential-currency-reset.html

(Actually, "wheelbarrow" may be a good name for a future credit or stored payment card.... Whip out the wheelbarrow. Top up the wheelbarrow.)

 

I have some pictures of this on page 43 of my copy of the Karma Sutra.

 

Harry Dent??????????
My goodness, Harry make Morgan ,Schiff and even Mannarino look like profits of finance.
Dent is surely one the craziest nonsensical imbeciles out there.
To even contemplate anything he says is utter madness.
Incase people here have not noticed i am utterly disgusted by any of the above named individuals, as well as Silverdoctors and ALL their ilk.
So many people have been sucked in by these crims that i dread to think how many lives have been ruined by their extreme NONSENSE.
Sure we should apply DYODD, BUT there are people (good people)that are in search of that 1 thing to help their families and it is these maggots above
that play on that need.

 

You mad bro?

 

Massive debt.

Countries living off debt.

Poor GDP's.

Broke countries lending broke countries loans that will never be paid.

Countries moving away from the petro dollar. (Foreign Settlement in other currencies)

Civil un-rest. (Religion, jobs etc)

Religious friction building to out-right hatred and.. civil war looming based on the religion.

Friction building as illegal immigrants flood across the Mediterranean and through-out Europe.

Arabs worried about Yemen.

Conflicts on the Turkish back-door.

Ukraine

US banks holding debt of the Frackers.

A heated stock-market surviving and growing due to cheap money but not rising due to be great companies or fabulous PE ratios.

South American oil producers and the low oil price.

US Frackers and the low oil price.

Bonds

The Old Return - I see, many European folk with dual citizenship leaving Europe for countries that may provide them with a better life in the senior days, example, Greeks, Germans and Italians returning to Australia. (Creating more strain on the system causing governments to change policy)

I don't think we have to listen to folk like (Dent, Schiff, Manarino, Hunter...etc they all have their agenda) I'm sure, many stacker's can work-out things for themselves.

A few ounces of precious metal can't hurt in my book.

 

He's basically saying anything is better than gold and we should all to hold cash in the bank. Or to buy real estate because he previously said real estate could go down by 50%, which looks much more attractive than gold going to $250.

 

The question is does Dent have a good track record?
http://www.pundittracker.com/pundits/profile/harry-dent

Look at this market call:
http://www.businessinsider.com/harry-dent-predicts-market-crash-in-q3-2013-1

And look at the chart for that time period.
http://finance.yahoo.com/echarts?s=^DJI+Interactive#{"range":"2y","scale":"linear"}

Not even a 10% correction during the supposed crash time table. Dent is a salesman, like the the rest of them.

 

The summary is worth the read:

 

5 $ silver, 250 $ gold?

That's sickening!

This was supposed to be a correction. I honestly don't think it will go lower than 800-900 $ in the worst case.
Gold is rising in a bunch of other currencies: EUR, RUB, JPY,... And the dollar can't hold itself this strong for longer.

In 2016, the USA will most CERTAINLY increase interest rates. They might start QE again and then gold will shoot up.