Here's a column by a guy talking about the reason for gold's recent fast increase from under $1100 to over $1150 ... Anyone here think he is right? Or wrong? Comments?
That's an interesting article. I dollar, yuan situation is difficult for us to understand, because it is a reverse relationship. Think of it this way, a Dollar is about 6 Yuan. If I'm the holder of Yuan, and I have a bill for you of $15 Dollars, you owe me $75 Yuan. If I allow my currency to increase in value, maybe one Dollar at 4 Yuan, then if you owe me the same $15, it is only $60 Yuan. I just lost money. So, why is it in my interest to allow my currency to increase in value? Answer, it's not! I think the value of gold and silver is increasing because the market is more aware of suppression methods that were taking place just a few months ago. With the CFTC meeting, market players are more aware of the manipulation and are looking for it. Market manipulators aren't going to make a move when they are being watched by hawks. So, the market is starting to go to a value it is supposed to be at, without the manipulation. This is just my opinion.
Is it a fast move? Its about 5%, where silver is at $18.30 up from $14.90 6 weeks ago. thats like 25% so normal uo/down as i see it??
Thats what I was thinking as well. I mean $50 is peanuts, even for a one day move. I have stocks that fluctuate $200-300 a day and nobody gives it much thought. Now if gold had gone up $300 in a day, his article might have more validity. Guy~
I agree. It's no big deal for something as volitile as gold. It's the same as if a stock rose from $20 to $21. The author must have owed his editor a column and that was the best he could come up with to meet the deadline.
I agree with his statement that all is not well in the world. However, the average hard working American realized this along time before this topic became popular print. I am sure at sometimes this year gold will hit another all time high. Seems this has been the case during the last few years.
I've noticed gold has a tendency to peak out in the U.S. when the dollar value is down. Then it is cheaper in Europe as their currency is up. Then the currency strength changes, and gold looks cheaper in the U.S. but is hitting new peaks in Europe. This has already happened since December of last year. When the dollar declines, gold will fall off it's peak in Europe and we will have new peak here in the U.S. Slow and cyclic, but I've noticed it.
Hi Noost, Are you from Michigan? I've been going to Liberty Coins for a couple of decades. Pat's good people as are all the staff. And yes, I agree with most of what he has to say, most of the time. rono
Hi Bill, I agree with much of his reasoning, but feel the decline in the dollar will be slow and gradual as this is in the best interest of everyone. Granted, there could be some black swan event that crashes everything, but china and our other trading partners own too many dollars to want them to be devalued drastically. I also agree with much of what Pat Heller talks about as posted by Noost above. I've known Pat for years and agree with most of what he says most of the time. Gold broke resistance last week at 1135 and I while I've been buying physical all along, I backed up the truck for paper stuff - either adding to a position, or buying GDX, GDXJ, GTU, CEF, PAL and SLW. and so it goes, rono
