Gigem77

Option Trader Friday Outlook: Is the Dollar Going UUP?

Untrusting:
10 years ago GE was a 60 dollar stock. 5 years ago it was 36 bucks. Today it is 15 bucks and change. During that time, gold has run from 255 to 1100. So your GE example shows how gold beat a blue chip stock over 1, 5 and 10 year periods. There have been no stock splits since 2000 and the dividends have varied from 10 cents to 31 cents, in no way compensating for the devastating drop in price.

The same thing is true of the dow, the nasdaq or the amex. Over the past 1, 5 and 10 years gold has outperformed by a large margin. GE is priced where it was in 1997 showing that buy and hold investors like you are getting killed. I bet you still own Oracle from 80.

Option Trader Friday Outlook: Is the Dollar Going UUP?

"but the price of gold collapses like quite the house of cards as soon as anyone tries to unload their shiny bits of metal." This is hyperbole without any evidence. .

The eurobanks have been selling 500 tonnes a year for at least a decade and the price of gold has risen 400% over that time frame. The IMF just sold 200 tonnes to India and the price of gold went higher.

The rest of the piece can be likewise shredded.


Meanwhile, the dollar shorts are covering fast and the DXY is less than 100 pips above the year's low. www.reuters.com/articl...

A Surprise in Store for the Dollar?

The US manipulates their inflation data (CPI) and this masks the reality of negative GDP. The BLS has become the "Ministry of Truth". Even this heavily massaged data is going to show a CPI gain of +.7% this week. The PPI is expected to be +1.3%. Meanwhile, FRE and FNM are in deep trouble. They have over 1.5 trillion in direct debt. Freddie is ``insolvent'' under fair value accounting rules, according to former St. Louis Federal Reserve President William Poole. LEH fell 40% last week. What happens if they go under? Throw in Indymac causing loss of confidence in the banking system and one could conclude that the dollar is in deep trouble. Gold blew through 960 Friday. Crude is almost to 150. Let's see what kind of "surprise" the fed and treasury can script.