Gold vs Paper
gold nuggets
Fiat currencies never last. We are currently experiencing the worst economy in 70 years. Our balance sheets have ballooned and no one believes the debt can be repaid. Hence, confidence in fiat currencies has eroded and holders of those currencies are trading them for hard assets like gold. Its real money as opposed to paper or promise money.
Orderly Devaluation of the Dollar
Arizona gold nuggets
Without continuing to monetize the debt (QEIII etc), at this point I think we would head into a deflationary depression. Either way, our debt needs to be paid through austerity (deflationary), or defaulted through inflation.
Neither scenario is good, but the FED has made it clear they are trying an orderly devaluation of the dollar.
I just don’t understand why people are suprised at the actions in the precious metals given the state of the world’s reserve currency.
Direction For The Dollar, Silver, GDP, QE2 and Elections
Peter Schiff comments on the silver price jump, the weak dollar and more.
Spot Gold Price Outlook
Arizona gold nuggets
From Peter Schiff, president and chief global strategist of Euro Pacific Capital, in the Euro Pacific Global Investor Newsletter, on September 30th:
”Given the US dollar’s status as the world’s reserve currency, America’s oversized status as the world’s biggest consumer, and the influence of overseas export-oriented businesses on their home governments, the falling dollar is a difficult issue for many countries to ignore. And with the imminent arrival of a second round of ‘quantitative easing’ from the Fed, the big guns of dollar destruction are being locked and loaded. The move looks poised to set off a frantic race to the bottom among global currencies, which will have important ramifications for every investor. Unfortunately, this is one race the United States is poised to win.
crystalline gold
Spot Gold Takes A Huge Fall
gold nugget
Today, the U.S. dollar jumped to a three-month high after Standard & Poor’s downgraded Greece’s credit ratings on concerns the country will struggle to rein in its deficit. The dollar strength had an inverse action on the spot gold price. As I’m writing this the spot gold price is off $37.
The dollar rallied last year as the credit crisis mushroomed, driving investors to the perceived safety of U.S. dollars. Even as the credit crisis has eased this year, the dollar has still tended to gain on days the global economic outlook has worsened.
