this is from john lee's article, "deflationary depression? where to go from here"

Where to go from here

As of October 20, the junior market looks to have stabilized and I am convinced the correction for quality companies will not last long (i.e. 6 months, less than one year for sure). This is much like the Nasdaq in 2001. Bad companies will go under, while good companies will survive and flourish.

With central banks recently pledging over $2 trillion to solve the crisis, a $750 billion bailout, more consumer stimulus, a federal deficit set to blow over $1 trillion, a continued US trade imbalance, a gigantic $10 trillion foreign reserve that is mostly yet to be diversified, and the central banks' inability to raise rates to combat inflationary pressure, I am more bullish on gold and gold equities than ever. Severe shortages of gold and silver at the retail level across the globe validate my belief that the supply of precious metals is dwindling fast at current prices. Reports from top Swiss vaults state they have "topped up" their metal storage space with no more capacity to spare.

There is talk of a deflationary depression, but my view strongly differs. Firstly, the money supply is exploding so prices will trend up after a brief scare. Secondly, on a global scale, the modernization of Asia and the Middle East is far from over with US $4 trillion at their disposal.

Regardless of the long term picture on gold, when things are selling at 50 cents on the dollar as some stocks are, a brief rebound should see a recovery back to at least cash value. Whenever there is a crisis there is an opportunity.

http://www.gold-eagle.com/editorials...