Originally Posted by Givemegold
Where did everyone go? Did you think that if the dow goes down commodities would go up. It is the other way around when the commmodities go down, the initial stocks involved go down, but they other ones go up because they can show a profit on energy savings alone. FEDEX is happy, etc.......The down tank on commodities looks like it will continue until the qe comes, if not they might go down to like pre-bush levels. The good old days when oil was less than 30 dollars when clinton was in office. A 120 dollar increase in a short period of time with Bush isn't logical so therefor it is an orchestrated bubble. Bubbles pop regardless of intervention. It might be time for the commodities bubble to pop like the bubbles before then. What then when you have been preaching that a commodity was going to protect you from inflation and it doesn't. What then?
You pontificate as if the paper markets have something to do with the real world. Well, I will concede they do, but only superficially. They do create artificial supply and demand, and "bubbles." If you have ever sat in a bathtub and let loose a good one, you have created a similar "bubble."
Regardless of what paper traders do, farmers still farm, miners still mine, refiners still refine, consumers still consume...you get the idea. Why do you try to interject logic into an illogical, fear and greed driven system?
As far as commodities protecting one from inflation, you are correct. They don't. However, I don't regard PMs as commodities, like corn or wheat or coffee are. I regard PMs as a real physical hedge against hyperinflation.
"Hyperinflation is caused by extremely rapid growth in the supply of paper money. They occur when the monetary and fiscal authorities of a nation regularly issue large quantities of money to pay for a large stream of government expenditures. In effect, inflation is a form of taxation in which the government gains at the expense of those who hold money while its value is declining. Hyperinflation is a very large taxation scheme."