``Gold is money and thus gold should do well in deflation. However, there are 10,000 hedge funds out there leveraged Lord only knows how much in gold, commodities, equities, and everything else, so sharp pullback should be expected as that leverage is unwound. Gold will likely recover from this pullback as will oil. The latter because of peak oil.'' -- We don't expect to see much of a pullback in commodities (Baltic index aside), but we largely agree with the view on gold. The yellow metal of kings loves turmoil as much as inflation.

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