Here is a thoughtful analysis by Chris Martenson, rebutting the argument that commodity prices are poised to fall. We agree with his contention that gold is increasingly viewed as a safe haven currency alternative to fiat currencies US$, Euro, etc. We see continued volatility but strong upside for precious metals and other commodities, and we agree with Martenson’s rebuttal of deflation. However, we think the picture is not so rosy in the short run for commodities tied to China’s unsustainably high infrastructure growth.
Click here for Martenson link.
Dan
Posted September 19, 2011 by Dan H. under Commodity Supercycle, Global Fiat Currency Crisis