27
Nov

Current thoughts 11/27/16

I think we have temporarily bottomed in gold and topped in the dollar.

I also think we have temporarily topped in the markets.

The dollar represents 57.6% the Euro. Have you looked at the effects of currencies and the potential of more exits with the coming elections? Refugee crisis? Add to that another 11.9% with Brexit and we’re at 69.5%. Next analyze the Debt to GDP ratios and it’s not a stretch to see that money will flow to perceived safety in the U.S. Dollar, especially while possessing the world’s strongest military. Add to this that the dollar, not the Euro or Pound is the world’s currency. Lastly, the Yen represents the world’s highest Debt to GDP and we’re up to 83.1% of the dollar.

The illusion is to expect a dollar crash where by default these other currencies would have to skyrocket.

Over time though, it will take more of all currencies to buy gold. Yes, the dollar and gold can move up together while still seeing the price of gold in U.S. Dollars take off. See 2017 after a non-U.S. globally led contraction.

 

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About Doug Eberhardt

Doug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534

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