Loading ...THE SKY IS FALLING
The US Dollar Index is going to Crash !
This is a Bold Statement that we are hearing more and more lately.
OK….that’s Good…Bring it On ! Right ?
But What is the US Dollar Index ?
It is the Value of the US Dollar VERSUS a Group of Currencies weighted as seen below.
So this means the value of these currencies is going to Soar vs the US Dollar.
Using Monthly Charts this should be evident from the Chartology of these Currencies as measured against the Greenback
Luckily Stockcharts has a way to easily follow these currency “crosses” Just put a $ sign in from to the Currency symbol and behold. Then what do YOU see ?
If these were Gold Stocks …which one of them would you buy this red hot minute ?
To me there is NO hint that any of these currencies are poised for an imminent strong move up .
Some are downright Bearish.
So what about Gold ?
IMHO If Gold is to be in a real BULL Gold will rise vs ALL currencies.
IMHO There will be NO Dollar Index Crash …These currencies will all fluctuate in an insignificant way against each other going forward … .and the Dollar Index is becoming insignificant …It may fall a little or rise a little…but who cares.
I fully agree the dollar “crash” will be against gold (and silver…oh please dear God, Amen) Gold is the money which all fiat currencies will be judged.
What’s been amazing is watching gold punch higher since last summer, while the dollar has remained basically stagnant. This shows the power behind the current move and if the dollar drops … more fuel for gold.
Well said Fully. For what it’s worth, Martin Armstrong agrees with your thesis. The real rally in gold will likely occur while the dollar is strengthening.
I said it before, and I’ll say it again: “If America sneezes, the world catches a cold.” A dollar drop or bear market means higher gold prices. A dollar crisis means a world crisis.