RE: Share price of gold mining - going up!I am in business for myself and cannot believe the utter falacy of numbers we recieve from the government on inflation. I am in the industrial hardware industry and we are seeing prices rise across the board on everything from paint and solvents, to lumber, building materials, and steel.
Some of our wholesalers and manufaturers are increasing prices as much as 30% or more on everyday items. Fasteners and stainless steel items have seen some of the biggest increases of all.
I have, over the past few months, done my job of acquiring some real bullion. I also had a question I wanted to ask you regarding the rise of gold and the declining dollar and how it will effect the housing market. I have some real estate investments and I am concerned with the housing market pulling in substantially and I was wondering what your personal opinion on this matter is.
I thank you so much for the work you do on a daily basis, your commitment to your work is second to none.
Thank you,
On the Marc
Dear Marc:
The only connection between the official inflation indices and real inflation is the general direction of UP. The use of the Bernanke Electric Mayhem Money Printing Press, which produced world wide liquidity as if driven by a Saturn Rocket, was non-traditional in its expansion of the world money supply in a transaction that cannot be reversed.
Since this liquidity cannot be drained from the world economy, as inflation starts it will ignite an experience of "HYPERINFLATION" that has already started and is unstoppable in a practical sense. What "On The Mark " shares with us is only the start as we enter a new HYPER-STAG-FLATION phase of this generational bull market in gold.
Like any market, housing has its unique characteristics. Location, view, population, regional economics of the area all factor in. My view is simple. If your property is desirable in all the unique characteristics of the real estate market reduce your debt and hold because on the next up (there will be one) prices will start where they left off. This is the product of currency debasement. Debt is the killer in the real estate market. If you have debt now then when a downturn arrives, you usually have nothing at the other end.
Thank you "On The Mark" for your communication.
Respectfully,
Jim Sinclair