But calling the exact top isn’t what’s important. Keeping and growing your wealth is. To do this, you must make sense of the economic data that are causing the green shoots and decipher for yourself whether they will blossom from here or wither and die from a potential drought.
Another story was developing at this time; the EURO had bounced off its lows and become a much stronger currency. As the dollar was sinking from its high in 2002, and the uncertainty of what affect Central Bank sales would have on the price of gold, the EURO became the only other “safe haven” in the mind of those who were looking to get out of the dollar.
Did you hear the other government rumor? Alchemist finds a way to produce unlimited amounts of new gold at essentially no cost. I’m just waiting for that one…. (Bernanke even made reference to it with a parable in his 2002 speech.) Here’s what he also said in that 2002 speech; “Like gold, U.S. dollars have value only to the extent …
The “only” thing that has kept this economy going is the housing run-up caused by the Fed‘s manipulation of interest rates lower causing consumers to find new money via equity from their homes and now the only thing keeping it going is massive infusion of the money supply by the Fed which is propping up the stock market…again.
How long can the game continue is the only question….