Any Which Way But Down!

According to the Gallup poll, Americans now consider "Gold" to be the best long-term investment.  (See the following table.)  To go along with this favorable trend, the Daily Sentiment Index has a reading of 98% bulls on gold.  Not to be undone, Central Banks are currently net buyers of gold for the first time in a generation.  It is hard to find anyone who believes that gold's current parabolic rise will end anytime soon.  But, what would happen to gold and silver if deflation becomes enemy #1?  But, then again, just about everyone believes that is an impossibility.  Well, there is a Wall Street axiom that goes something like this: "The market will do whatever it has to do to prove the majority of investors wrong!"  In other words, be careful out there my Gold Bugs, because deflation (IMHO) has not run its course.

Americans’ Ratings of the Best Long-term Investment
Gallup	Gold	Real Estate	Stocks	Savings	Bonds
August 11-14, 2011	34%	19%	17%	14%	10%