Presently the market seems to be saying there is deflation ahead. Will there be an inflationary bump on the way to deflation. That is the question.

From Clive Maund, Oct 20, 2008 2:04PM

…. Assuming the Grand Rescue Plan goes ahead what will it mean for commodities and more particularly for gold? The massive infusions of newly created money that the plan calls for will feed through into huge inflation. In anticipation of this the forced commodity liquidation currently underway can be expected to abruptly stop and then go into reverse, so that prices climb steeply. Gold will go through the roof. …..

For the whole article: www.clivemaund.com

Sinclair is saying gold will rise to $1650.00 “much faster than I have anticipated”:

“Dear Comrades In Golden Arms,

Gold is a currency.

Paper currency insures nothing.

Gold is insurance.

Gold is not a commodity.

Gold will trade at a minimum of $1650 MUCH SOONER THAN I HAVE ANTICIPATED.

The shorts in gold shares will get what they deserve - financial decimation.

Your friend,
Jim”

I like the idea of an abrupt stop in falling gold and commodity prices. I like the idea of the commodity liquidation going into reverse. I like the idea of prices climbing steeply and gold going through the roof. Right now investors seem to think there will be ongoing deflation in commodity prices. One wonders if the obvious is obviously wrong.

By the way I was extremely impressed by Kodiak's latest news release and the potential of the uranium properties. This is surely a must-own company. JMHO.