CAN GOLD AND SILVER PRICES RISE
WITH THE USD ?
THAT IS THE QUESTION BEFORE US
A RISING US DOLLAR INDEX ..OF COURSE…SIMPLY MEANS IT’S FOR THE MOMENT GAINING AGAINST
THE BASKET OF CURRENCIES IT IS SET AGAINST ( PREDOMINENTELY THE EURO , POUND , YEN , CANADIAN DOLLAR, SWISS FRANK )
BUT FOR A LONG TIME (FOREVER) WHEN THIS DOLLAR INDEX RISES …GOLD ( THE ULTIMATE CURRENCY) FALLS IN TERMS OF USD
THIS ACTUALLY IS BULLSHIT BECAUSE ALL CURENCIES ARE DEVALUING ALL THE TIME…BUT AT DIFFERENT SPEEDS IN THE SHORT TERM …SO THE RISING US DOLLAR INDEX SHOULD NOT NECESSARILY MEAN A LOWER GOLD PRICE…HOWEVER THE INVERSE CORELATION STILL IS STRONG
THE REAL GOLD BULL WILL NOT BEGIN UNTIL THIS INVERSE RATIO ENDS
THE US DOLLAR IS BREAKING OUT NOW SO HEADWINDS FOR THE PMs….UNLESS THIS TIME IS DIFFERENT …CONVINCE ME SOMONE
Well put…It’s not a true bull unless it rises against all currencies!
…I think I see some horns!!
“THE REAL GOLD BULL WILL NOT BEGIN UNTIL THIS INVERSE RATIO ENDS”
Bonds are LT oversold.
But they can get even more oversold.
Perhaps PMs sniff it out first, but I’m watching TLT, utilities, and home builders.
These are also rate sensitive.