CaptBob

Dollar Rally Won't Last Forever; Don't Give Up on Gold

In times like these, it used to be, gold and real estate.
Today it's pretty much the one that's left--with all the more reason!!. Yes, silver's included.
The only real estate worth a look is farmland, maybe a small piece for your potatoes.

The Always Precarious Dollar (and Its Impact on Gold)

The only thing holding up the dollar is other country's pursuing the same "strategy" with their own fiat currency's. It looks like a race to the bottom!!.
Our gain in trade balance will only result in the dollar holders around the world exchanging them for other currencies as fast as we can accumulate them. At least we can use them to rescue Banks and Housing-(simultaneousl... since they're joined at the "Mortgage"), and won't have to print more, but we will anyway I'm sure, there's always an excuse once "you're addicted" it's just sooo easy.
Pity Asia and the Mid-East still won't buy from us--well maybe food--, can't let the price of that slip.

Gold is Money - And Nothing Else

Everyone is just debating semantics:
The day may return--sooner than you think--when the local Doctor will gladly accept 2 chickens for an office visit.

Almost everything is "a medium of exchange" valued by supply and demand. And the supply of dollars being increasing as it is, only increases the demand for more dollars for the same chicken--it's a fiat inflation press they're running.

The only benefit in using dollars is they're easier to carry around.
Otherwise the "Barter system" excels. We'd rather trade my three fishing rods for your lawnmower than use dollars as they won't devalue on the way home. And neither party gets taxed along the way.

Sell Gold in May and Go Away?

It's true that gold may just "loose it's luster" but I'd like a little loss of support to cement the deal. Whats likely to happen to the fundamentals??
1. The dollar will strengthen?? Fewer dollars, higher interest, robust economic turnaround, less debt??? All doubtful.

2. Oil will depreciate?? The most likely reason for this is lower demand in the private transport sector caused by some Country's lowering subsidies, pricing down demands. Drilling and large finds not likely to exceed dwindling supplies. Our stocks are not being drawn down by $4 gas, where is the denial point?? Chinese and Indian demand is like that of gold, every price drop produces more physical buyers.

3. Higher production levels at the mines?? Recent history show this to be unlikely.

4. The trillions find a more attractive yield in a safer vehicle to switch into?? All of history says NO, and if they don't like real estate at these prices--I can't think of one!.

Scuse me: My crystal ball is clouding up, guess I'll take gold for the long ride.

The Case for $1300/Oz Gold

Ever wondered what happens as the Chinese Yuan strengthens VS the dollar??
The Billion Chinese whose wages have actually increased and can't wait to replace that bike with a scooter and buy oil, will have it within their means, since the oil is priced in dollars. And add in the Indians.

And the oil will be bid up, for there will be less, resulting in the dollar being pressed down. And away the spiral will go leaving us in the dust.

And you can say the same thing for gold--they will want that too. So convert your paper to gold which will rise, and thus you will be holding Yuan.

Gold and Oil Price Limits

An epicurean delight for the mind. It's verbal flavors only exceeded by it's unerring accuracy. Why should intelligent information always by flavored "Dry Yawns"??
Bravo!

The Nature of the Current Gold Correction

Boris: You wrote that today?/ What time zone??
My records shows your gold "correction" (Spot) in the past 4 days has gone UP-^$30. and the dollar "Rally" has gone from (Index) $73. to $73.. Help--I'm confused.

The 'Death of Gold' Revisited

Good basic philosophy: But be proactive not reactive.
Sell a falling dollar and take payment in gold.
And vice versa.