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Inflation Pinch – Gold Drops In Spite of Facts – Buy!

Gold dropped today to below $900 per oz. It isn’t based upon the fundamentals but upon the view that the dollar bear market has ended. The hedge funds are selling gold/ag/oil to buy dollar financial stocks. This is causing a pull back in the hard asset stocks and a move up (probably temporary in my opinion) in the financials.

This graph, showing year-over-year prices for things consumers buy, says that inflation is here. If you don’t own any of the hard asset stocks, then you are getting a gift here in the form of this short-term correction. We are buyers and you should be, too.


Thanks to Newsday for the graphic:

What’s putting the pinch on consumers?
Newsday, March 31, 2008,0,3085764.story