freefall51

Why Are Investors Returning to the Dollar?

That would explain why Jim Rogers is shorting 30 year US Gov. bonds.
He may see the influx of $$$ into treasuries unwind and bet those $$$ are going into stocks starting Nov. 1? The old fox is always a step ahead.

Good insight, thanks.

Countdown of Manipulated Gold Price Running Out

This discussion reminds me to the peak oil discussion we had in spring. Everybody was jumping on the train with the longterm perspective that oil as a irreversibly consumable commodity goes up like crazy. Did not happen so fast. There were other issues in the foreground that caused oil to drop like a stone.

I suspect something similar happens at this time with gold. Gold held about its value, but the GLD price curve looks exceedingly ugly and I would not bet it breaks to the upside. That does not take anything away from the longterm perspective of gold.

So what is it? A surge of uncovered future contracts hitting the market and depressing prices?

Yes a lot more money is being printed supporting a weaker $ , but the spending party is mostly over for the time being. Creditcards and mortgages are maxed out, house prices have not bottomed yet, consumer confidence in abysmal, lending standards and cost go up drastically. This is not about liquidity but solvency which goes to the hearth of credit worthiness of the consumer. That is deteriorating and limits spending especially for discretionaryand costly items like gold..

I dont see why a economical contraction does not affect all asset classes. Last time we came out of a recession in 2002 gold had bottomed. I would not declare the goldprice at a bottom here.