Tag: dollar

17 Reasons Why I Trust Silver

| December 15, 2014 | Category: Investing
17 Reasons Why I Trust Silver

Based on war and inflation expectations, the long term dollar prospects, central banking and money printing policies, I expect silver to go much higher from here.

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First Signs Of Gold And The Dollar Decoupling

| December 6, 2014 | Category: Price
First Signs Of Gold And The Dollar Decoupling

Friday aside, the dollar has not had as much impact on gold’s direction as it did previously, for the dollar index has continued in its upward trajectory this week. Therefore, it will be very interesting to see how the yellow metal will do relative to the dollar’s performance next week. If the greenback continues in its upward trajectory, but gold fails to head in the opposite direction, then one could conclude that the two assets have decoupled for now. So, there is a chance that investors are finally starting to treat gold as an independent asset, not a USD-denominated FX pair.

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New Signs Gold and Silver Are Returning as Monetary Assets

New Signs Gold and Silver Are Returning as Monetary Assets

Granted, it seems unlikely that the U.S. or any major country will return their currency to a classical gold standard anytime soon. But signs abound that precious metals are re-entering the public consciousness – and will be playing a more prominent role in monetary systems as geopolitical tensions rise, debt levels become more unmanageable, and public confidence in political institutions wanes.

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Fake Money, A “Strong” Dollar, And Gold Investing

| November 26, 2014 | Category: Investing
Fake Money, A “Strong” Dollar, And Gold Investing

The investment rationale for gold is the inverse of that for all paper currencies. Cheering for the rise in the dollar relative to other currencies, as measured by the DXY, is in our opinion seriously misplaced. The rise in the index is more a matter of sinking non-dollar currencies (or, more precisely, systemic subsidence) than an ascending dollar. No paper currency offers protection from monetary transgressions because of national borders: What happens in Europe, Japan, or China does not stay in Europe, Japan, or China. To function well, the global financial system must be seamless.

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Rising Gold And US Dollar. Will The Impossible Continue?

Rising Gold And US Dollar. Will The Impossible Continue?

In the last two weeks, we are seeing the impossible–a rise in the gold price and the US dollar. This isn’t as impossible as it seems–we’ve seen this before, from late 2009 to about mid-2010. It was a good time to be invested in gold equities. Notice that during the impossible trend in the past, gold and USDX never rose together for more than two consecutive weeks. The move was seemed to be a series of cycles and countercycles, over which both parameters increased. As I’ve argued previously, rising gold and US dollar is the most economically favourable environment for gold equities–particularly those with production. If the number of dollars you receive per unit of gold increases, and at the same time the value of those dollars increases, your revenue increase will reflect both inputs.

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Why Gold Should Rise And Exceed Previous Highs

Why Gold Should Rise And Exceed Previous Highs

Are Russia and Europe buying more gold? Will the Swiss vote ‘yes’ in its gold referendum? Is there a chance for QE4? Peter Schiff is on Kitco News to comment on some of the most recent headlines surrounding the gold market and also to share his thoughts on the U.S. economy. The Euro Pacific CEO says the U.S. recovery isn’t real and adds that the dollar is only strong because all other currencies are weak.

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Charts Of Gold And Silver Reveal Power Of Elite’s Central Bankers

| November 8, 2014 | Category: Economy
Charts Of Gold And Silver Reveal Power Of Elite’s Central Bankers

If some of the strongest known fundamental demand for gold and silver has had no effect on price, the question has to be, why not? The simple and only answer is the elite’s protecting its Ponzi fiat scheme, for they can never allow gold and silver to be considered as an alternative to their fiat paper issue. All they can do is what they have been doing for over 100 years, manipulate gold and silver, crushing them as viable alternatives to the “dollar” [more accurately, Federal Reserve Note], and the Euro dollar.

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Gold Price Extends Break Down, Dollar Extends Breakout

| October 30, 2014 | Category: Price
Gold Price Extends Break Down, Dollar Extends Breakout

The end of QE is bullish for the Dollar. Note that the Fed has ended QE and the European Central Bank is threatening QE. This is Dollar bullish and Euro bearish. The US Dollar ETF held its support zone and surged to affirm support at 22.60. Gold gave us a little preview of the Fed policy statement by breaking down last week. This break held as GLD consolidated in the 118 area. GLD continued lower after the Fed announced the long awaited end to quantitative easing, which is Dollar bullish and bullion bearish. I will not move key resistance to 119.

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A Tale of Two Cities

A Tale of Two Cities

Our fictional City A might resemble some major cities in the western hemisphere. It is inhabited by regular people as well as politicians, rats, and central bankers. Currency units are digital, purchase less every year, and are created in large quantities every day. The political and financial elite control most of the government and the economy for their own benefit. Economic statistics and financial TV continually assure the people that “it’s all good.” The crashes of 2000, 2006, and 2008 caused many people to question the usual narrative.

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What Will the End of QE Mean for the Precious Metals?

What Will the End of QE Mean for the Precious Metals?

There is a widespread misconception that only rate cuts or more QE would be bullish for gold and silver. To the contrary, if rising inflation pressures force the Fed to raise rates, that would potentially be quite bullish for gold and silver as well. Instead of fearing rate hikes, metals investors should actually look forward to the next rate-raising cycle. That’s when the biggest gains in gold and silver could come. At some point, yes, real interest rates may turn positive and precious metals prices may get overextended to the upside. But neither situation exists under current market conditions.

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Precious Metals vs The Formidable Loss Of Purchasing Power Of The Dollar

Precious Metals vs The Formidable Loss Of Purchasing Power Of The Dollar

If you had purchased $100 in gold in 1971, it would be worth over $3,040 in today’s dollars. But if you had left your $100 in cash, you would still have only $100 in cash, which today only retains about 17% of its former value. Similar to gold, if you had purchased $100 in silver back in 1971, it would be worth over $1,200 in today’s dollars.

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Gold Is Extending Its October Run

Gold Is Extending Its October Run

The correction in the Dollar helped gold as the Gold SPDR GLD advanced over 5% from its early October low. The first chart shows GLD breaking the August trend line and moving back above the support break. In an interesting twist, gold is ignoring weakness in the Euro today and moving higher. While I am not sure if this will last, I would mark first support at 118 and stay positive on gold as long as this level holds. All bets are off if the Dollar breaks out to the upside.

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Gold Price – A Significant Bounce Off Support

| October 9, 2014 | Category: Price
Gold Price – A Significant Bounce Off Support

Thanks to a sharp pullback by the dollar gold has managed to bounce off an important support line, and offers the possibility that another rally is beginning, a rally that could end the long decline from all-time highs. It is a time for increased attention for those who want to catch the next gold rally.

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Gold Price vs U.S. Debt Ratio In 2014: A Major Disconnect

Gold Price vs U.S. Debt Ratio In 2014: A Major Disconnect

Gold has tracked the expansion in US debt pretty handily. The correlation between the two is +0.86. In 2011, the rise in the gold price became overextended relative to the rise in US debt. Then it decoupled and went in the opposite direction. This is a similar trend to what occurred in the early 1980s. And if one expects that relationship to resume, then gold looks anomalously cheap relative to the rising level of US debt.

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