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<p>[QUOTE="Yankee, post: 696734, member: 18618"]It doesnt look good </p><p>Contrary to popular belief, our analysis shows that the greenback is about to start (or has already started) a sustainable rally. The government's efforts to re-inflate the U.S. monetary system should be outpaced by the amount of dollars destroyed by the continuation of the bear market. Here's why:</p><p>The US dollar is by far the most inflated currency. It is also the most commonly used currency in the world. As such, most of the debt - and toxic assets - in the world is US dollar denominated. As those toxic assets continue to deflate, US denominated wealth will continue to shrink.</p><p>The law of supply and demand teaches us that scarcity of any product results in higher prices. In other words, the fewer dollars in circulation the more valuable the remaining dollars will become. Not only are the amount of dollars in circulation already declining, the velocity of the remaining dollars is slowing as well. This means consumers tend to 'park' their dollars in savings account rather than spending.</p><p>In summary, a strengthening dollar will push gold once again beneath $1,000/oz.<a href="http://finance.yahoo.com/news/1000oz-Gold-New-Reality-or-etfguide-475225903.html?x=0&.v=1" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://finance.yahoo.com/news/1000oz-Gold-New-Reality-or-etfguide-475225903.html?x=0&.v=1" rel="nofollow">http://finance.yahoo.com/news/1000oz-Gold-New-Reality-or-etfguide-475225903.html?x=0&.v=1</a>[/QUOTE]</p><p><br /></p>
[QUOTE="Yankee, post: 696734, member: 18618"]It doesnt look good Contrary to popular belief, our analysis shows that the greenback is about to start (or has already started) a sustainable rally. The government's efforts to re-inflate the U.S. monetary system should be outpaced by the amount of dollars destroyed by the continuation of the bear market. Here's why: The US dollar is by far the most inflated currency. It is also the most commonly used currency in the world. As such, most of the debt - and toxic assets - in the world is US dollar denominated. As those toxic assets continue to deflate, US denominated wealth will continue to shrink. The law of supply and demand teaches us that scarcity of any product results in higher prices. In other words, the fewer dollars in circulation the more valuable the remaining dollars will become. Not only are the amount of dollars in circulation already declining, the velocity of the remaining dollars is slowing as well. This means consumers tend to 'park' their dollars in savings account rather than spending. In summary, a strengthening dollar will push gold once again beneath $1,000/oz.[URL]http://finance.yahoo.com/news/1000oz-Gold-New-Reality-or-etfguide-475225903.html?x=0&.v=1[/URL][/QUOTE]
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$1,000/oz Gold - New Reality or New Bubble?
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