Gold – Time to Buy?
California gold nugget
Why now could be another good buying opportunity for gold!
The dollar crisis is building.
When it hits, interest rates will rise dramatically as the US struggles to finance its massive budget and trade deficits while the rest of the world tries to escape a depreciating dollar.
Since the spring of this year, the value of the US dollar has collapsed against every currency except those pegged to it. The Swiss franc has risen 14% against the dollar. Every hard currency from the Canadian dollar to the Euro and UK pound has risen at least 13 % against the US dollar since April 2009. The Japanese yen is not far behind, and the Brazilian real has risen 25% against the almighty US dollar. Even the Russian ruble has risen 13% against the US dollar.
What sort of recovery is it when the safest investment is to bet against the US dollar?
Australian gold nuggets
Excellent post here!
At some point, the dollar will collapse and interest rates will go up sharply…it has to because foreigners will dump our dollars and our treasuries and will only be enticed to buy them again when they get rewarded for their risk…the mkts set the interest rates and not the Feds…I guarantee you will interest rates will go up when foreigners wake up and stop buying our debt.
Herkimer Diamonds
Fundamentally, deflation + flight to the US dollar means that its the USD which should continue to rise, while gold will fall. Only when the deflationary pressure subsides {who knows when the fed will stop printing money and bailing out the banks}, and the upward pressure inflation due to the flood of money starts that gold should start moving up. This is so now.
Gold Prospecting