Courtesy of Mish.
In an interview with GoldMoney, institutional advisor Bob Hoye explains Why Gold Miners are Winners During Deflation
Market historian, geologist and Pivotal Events author Bob Hoye, talks to the GoldMoney Foundation’s Dominic Frisby about the real price of gold in times of post-bubble deleveraging, and the opportunities in gold mining shares – which he thinks could be on the verge of a great new bull market.
Click on Link For Video
To see a video with Bob Hoye, please click on the above link.
I point out in advance that I do have a relationship with GoldMoney, and that I also own shares of miners as well as physical gold and silver at GoldMoney.
If anyone wants information about GoldMoney or investing in physical gold and silver in general, please Email Mish.
I have been in the same boat with Bob Hoye for as long as I can remember.
Mish Thoughts on Gold in Deflation
It is important to point out upfront what “deflation” means to me.
Deflation is not about rising prices, so please do not send me emails telling me about the price of gasoline or food (or anything else), especially if you are going to ignore trillions of dollars of debt and equity wiped off the books in the housing bust.
My definition of inflation is a net increase of money supply and credit, with credit marked to market. Deflation is a net decrease of money supply and credit, with credit marked to market.
We have been in generally deflationary times since 2007 along with the housing bust. Bernanke and central bankers in general have poured on the liquidity spigots fighting the collapse in credit, and as I expected (but other deflationists like Robert Prechter did not), gold advanced.
Here are some specific references to things I have written:…
