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Wednesday, February 25, 2009

Canadian PM Stocks: Possible Shorts

Canada is resource rich. Check out the Global Gold Index Fund (XGD) as a possible short candidate... or go hunting for individual PM stocks.


Anonymous said...

I'm going to disagree with you on this one Ben. Everybody and their mother is waiting for an opportunity to get into gold. Sure there will be a relief sell-off, but I'm looking for another rally on the back of any number of catalysts to get to the 1100 level.

Also, Steffan Karlsson in his blog entry "Fed inflates again" indicates that MZM and M2 are increasing, which would lead to price inflation (and higher gold prices).

Ben Bittrolff said...

Everybody and their mother are always wrong...

Like lemmings over the cliff.

I'm short BECAUSE everybody likes gold and silver.

I'm short BECAUSE everybody expects inflation.

MZM and M2 spikes are not inflationary. Not at all. They just measure liquidity. Suppose everybody liquidates the assets they hold... from stocks to real estate and convert them all to cash. MZM and M2 would do a moonshot. But so what? That's not inflationary at all. In fact it would be a symptom of DEFLATIONARY forces... namely massive liquidation of risky assets.

Inflation is IMPOSSIBLE in this environment. Just you wait and see.