Total: 8 2 6Certain areas of the world are more vulnerable to economic and societal collapse. While most analysts gauge the strength or weakness of an economy based on its outstanding debt or debt to GDP ratio, there is another factor that is a much better indicator. To understand which areas and regions in the world...

Does gold do well in Inflation or Deflation and what is the role of Gold Mining Stocks. The Inflation case is well known and publicized but the case for an Economic Winter is not clear to all. EWI says gold will crash in the coming winter becauses we are not on a gold standard and maintains a bearish target long term for it. They said so even in 2002. The reason that gold plays a role is that it is often a monetary anchor. And sooner or later even after a deflationary event government spending and weak money policies have to come in to support growth. So during the last documented depression in the US even as gold was on a standard people took to express this opinion on Gold miners and the case of Homestake Mining is often quoted. AFter 1932 this was was confirmed as the US confiscated gold holdings and then revalued gold to a higher level against the dollar.

After turning on Metal prices I have to relook at the metals index. I think starting a year ago when the Metal index started a 3rd wave I was expecting it to be equally large to the first. The extentions have not played out despite rising metal prices recently. The Alternate is below where 5<3<1 in the wave structure and we have broken the rising trendline. Th recent rally then was a pullback to the trendline. Monthly momentum remains in sell mode. So till new positive evidence shows up. Wave y=w can take us to the 38.2% retracement mark or extend to 50% near the wave 2 low. In short we are looking at a further correction in Metals now. This week prices closed below the 20dma after a 61.8% retracement at wave x.