However, just today, the dollar index hit a 15 month low and is moving closer to the 72 mark and gold hit a high of $1,186. The action in the price of gold to new highs seems to be predicting a fall below 72. Will the March 2008 mark be taken out? No mention of this dynamic by the CFA.
As I pointed out in my reply to the CFA’s article, the only thing that is highly speculative is blind faith in an asset that has 38 years of existence without gold backing. That being the U.S. dollar.
Read More0But now that everyone is talking about the dollar weakness again, as well as gold breaking to new highs, Geithner is stuck between the proverbial rock and a hard place. If he takes the strong dollar stance, it could kill the stock market rally, especially if the Fed increased interest rates. If he lets the dollar fall too much, there could be a rush for the exit with Japan and China leading the way. There is a reason why Obama chose this time to take his trip to China. The U.S. needs to maintain the U.S. Dollar’s world reserve currency status. It cannot afford to become a second rate nation. Something has to be done.
Read More0Marc Faber called for gold to go to $800 last week. Jim Rogers is recommending physical gold now over mining stocks.
It’s not easy to time the gold market because of these external influences. Holders of physical gold care not that gold falls to $800 an ounce on its way to $2,000 and higher.
Read More0So why does Roubini hate gold? Because he’s a Keynesian Government loving professor at NYU and former advisor to the U.S. Treausry Department. Show me a professor at a University that likes gold, outside of the Austrians, and I’ll listen to what they have to say. Otherwise, remember where the professors bread is buttered.
Read More0But the Elliott Wave folks miss one thing when they do their prognosticating, and that is “the unexpected.” In a perfect world with no outside influence, the ABCD patterns of Elliott Wave Theory seem to fall in place naturally. But Elliott Wave Theory doesn’t take into account external influences that can affect these patterns like what occurred earlier this week.
Read More0CFP’s are great as advisors as they take into account the entire realm of planning when recommending how people should handle their finances and investments. They have to pass a comprehensive exam and are required to complete continuing education each year to stay on top of their expertise.
But even CFP’s can misinterpret the need for gold as part of a diversified portfolio. The reason is, the books they are required to read before taking the CFP exam don’t even address gold properly and there are no continuing education courses that addresses diversification into gold.
Read More0“DOW 10,000 (version) 2.0,” but is it really a better version, or even the same version as DOW 10,000 of 1999?
What most don’t realize is that the DOW 10,000 of 3/12/99 was worth more in terms of purchasing power than DOW 10,000 10/14/09 by a whopping 23.8%. Why? Because the dollar index has fallen 23.8% since March of 1999.
Read More0