My friends and my investment adviser said that was a very poor move. Indeed, my fund price dropped 35% because the market seemed stable and the market turmoil would heal.

Fast forward another 9 months and the landscape looks very different. We have now seen the markets go through a complete meltdown and my gold-backed mutual is doing incredibly well, amidst the market conditions we’re in.

I found your post while researching for more options of investing in gold and it is funny to see that I’m not the only one sitting in the same mindset months ago.

I think we’ll first see continued deflation, but then some big time inflation when commodity prices start sharply rising with limited supplies.

It’s too bad physical is so difficult (and pricey…in terms of spreads) to get a hold of. Any suggestions?

Mark

http://www.planbeconomics.com/2009/01/23/solid-gold-silver-copper-and-oil/

http://meltdowncomexhoax.wordpress.com/

The United States Treasury and the Federal Reserve are throwing a trillion dollars, more or less, into the banking system. And, there’s surely much more to come.

It’s not only the U.S. monetary authorities pumping up the money supply. Their counterparts in every major economy - including the United Kingdom and the Euro zone, China, Russia, Japan and on and on - are doing likewise.

We have never - in the history of money - seen such an expansion in its supply without, after a period of time, a rapid deterioration in its value, in other words, without a rapid increase in the overall price level. More than any other factor influencing the gold market, it is the inevitable rise in price inflation that will propel gold skyward in the next few years.