14/02/2011 by Philinje.

Here is an excellent blog piece on what happens to real estate during inflationary and hyperinflationary episodes:

http://gonzalolira.blogspot.com/2011/02/inflation-hyperinflation-and-real.html

We can learn from our South American brethren. Food for thought. Have those gold coins ready. The founder of Hilton hotels bought his first hotel during the Weimar period with a single gold coin, or so the story goes.

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14/02/2011 by Philinje.

It looks like equities confirmed a bullish trend by end of last week. They tested their breakout above 2008 highs and now the breakout is confirmed. We should see higher equity prices from here.

This also will lift silver, regardless of dollar action. Silver has been stronger than gold of late, and the reason is that the thesis of economic growth is winning the day. That is just a thesis, and in fact equities are dangerously close to crashing, but anyway it looks like at least a small rally is in the cards for now.

So what happens next? Silver could move up to previous highs and in fact could even go up to $32, before a correction sets in. Gold may barely make it up to its previous highs around $1440. Then gold will likely roll over and take silver with it. We may also get a crash in equities at that point, possibly in a week or two. Or not. Equities may just swoon a bit before taking off on a major rally toward end of this year.

Regardless, there will likely be a break as we get into spring and then by summer it’s time to step aside and see how things develop. Here is an excellent article on a likely path forward:

http://goldscents.blogspot.com/2011/02/silver-bull.html

Please note that a triangle consolidation right now in silver would mean lower prices only briefly after this next high. So it’s up to you how to play that. Gold may take a deeper dive.

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