richrdinbellingham

Can Gold Be Suppressed Indefinitely?

An unwinding yen carry trade, the EUR/JPY, that is FXE:FXY, enforced by a historic level of longs in the futures market for the US Dollar, $USD, has suppressed the price of gold, and will suppress it even more, until we have a systemic risk event breakdown, that is a world wide financial breakdown, then gold will arise as the defacto international currency and means of garnering and maintaining wealth.

For lots of commentary on gold, you and your readers may want to visit my linked article: Which Way For Gold And The US Dollar?

Commodities Meltdown as Dollar Surges

The Dollar has been strengthening on a falling Euro, FXE, which is something that I discuss at length in the linked article Which Way For Gold And The US Dollar?

Is the Dollar Really King?

Your article relates that the US Dollar could have more to run.

Well, that unfortunately could be the case; which is a living investment nightmare for me as I see "true" investment value in gold.

Perhaps you and others might enjoy my linked article Which Way For Gold And The US Dollar?

Markets Are 'Free Fallin'

I like this article, it's timely, broad based, full of facts and brutally truthful.

Silver, SLV, has sold off terrifically proving that its an industrial metal and not an investment metal.

And you relate that Russia is down nearly 45% over the past few months.

Well the reason for The Falling is that the EUR/USD is falling; yes a falling Euro, FXE, is the culprit.

A falling Euro means a rising US Dollar, DXY, and a rising UUP, and a falling oil, USO,

The falling EUR/USD is like the falling EUR/JPY. Both of these currency pairs are unwinding which is something I talk about in the linked article Which Way For Gold And The US Dollar?

Argentina and Brazil Abolish Dollar in Bilateral Trade

In the linked article I write that an unwinding yen carry trade, that is the EUR/JPY, will propel development of a common currency for South America.

Yes a single unified and common currency is likely now for the Union of South American Nations, UNASUR, as Brazil and Argentina move to abolish the US Dollar in bilateral trade.

Independence Day: Decoupling Gold and Silver from the Dollar

It is indeed Independence Day as gold has decoupled from all currencies and is moving higher.

Gold has arisen as the defacto world's currency replacing the US Dollar, $USD, DX, and the Euro, FXE.

And gold has arisen as the measure and means of garnering and accumulating wealth: fiat wealth of currencies, such as the Euro, FXE, stocks, such as the Russell 2000, IWM, the US Stocks, VTI, the world stocks, EFA, and the emerging markets, EEM.

A physical shortage of gold at coin dealers and jewlers is causing gold, GLD, and $GOLD, to move higher.

The US Dollar, DX and $USD, is moving lower.

Double Short ProShares ETFs

When reading the report, I ask "do EEV and FXP have more to run?

EEV is up 7.6% and FXP is up 2.1% from 7/15/2008 (but from the charts, it sure looks like a lot more); and SKF is down 35.0% from the beginning of the US Dollar, $USD, Rally when those invested via the yen carry trade sold oil and commodities and went long the financial sector and US based consumer and housing stocks.

The well springs of liquidity have been turned off for traditional investing long the markets as Peak Currencies turned the EUR/JPY down on July 25, 2008 and Peak Dollar turned the USD/JPY down on August 15, 2008.

The chart of EEV shows that disinvestment began to come out the emerging markets on May 19, 2008, when the TAF, TSLF and PDCF rally ended, and then again on June 23, 2008 as those with access to the 0.5% Bank of Japan loans sold out of the BRICS, EEB, to take profits and repay their loans.

Then on July 25, 2008, an Elliott Wave 3 Down commenced in the EUR/JPY, this blasted EEV much higher.

Note that 80 was the middle of an Elliot Wave 3 mid point rest for EEV; and now we had Elliott Wave 5 completion with the abandoned baby candlestick.

The weekly chart of EEV shows a gravestone doji on falling volume; with 50% gain from May 19, 2008.

The weekly chart of EEM shows a fall to suppor at the edge of a head and shoulders pattern.

The weekly chart of FXP shows a gravestone doji as well; with 50% gain from May 19, 2008.

It was lack of liquidity coming from failed TAF, TSLF, and PDCF that started both 50% higher.

So we have completion of current activity for EEV; the question is what is next?

Part of the answer comes from knowing what the Euro, FXE, will be doing; the weekly chart of the Euro, FXE, shows it has fallen to support at 148.

Eventually there is more disinvestment coming out of the emerging markets, EEM, and China, FXI as the yen carry trade EUR/JPY, FXE:FXY, continues to unwind on risk aversion to inflation, lack of growth, and debt at banks.

The weekly chart of EUR/JPY, FXE:FXY, shows that the yen carry trade invigorate investment in the BRICS, EEB, and the emerging markets EEM, up until May 19th.

And there is still plent of stored up yen carry trades left in EEB, that is for sure; it's just a matter of "when is it coming out?"

The fall in the weekly chart of EUR/JPY, FXE:FXY, explains the tremendous disinvestment that has come out of the commodity stocks such as the metal and manufacturing stocks, XME, and the gold mining stocks, that is the HUI Indexed precious metal mining stocks, GDX.

Since July 15, 2008, the US has been the destination of interest rate differential investing as those with access to Bank of Japan funds went long went long the financial sector, IYF, Russell 2000 value, IWN, Housing, XHB, Nasdaq, QQQQ, and Consumer, IYC, stocks.

I fully expect the USD/JPY to fall this next week and the destruction of the US Dollar, $USD, to commence as well as a run on the US Treasury Bonds, TLT, to recommence: the Dollar Rally stocks will fall greatly rewarding those who are short the financial sector via SKF and short the Dollar by investing in gold, $GOLD.

I recommend that one be invested 2/3 in gold at BullionVault and GoldMoney; and 1/3 in SKF in a trust account and not a brokerage account.

Why Gold Is the New Currency

Despite gold's recent sell off, an investment demand for gold is abiding.

We are approacing PeaK Dollar.

Then gold will arise as the global currency and the means of preserving wealth.

Why Gold Is the New Currency

Despite gold's recent sell off, an investment demand for gold is abiding.

We are approacing PeaK Dollar.

Then gold will arise as the global currency and the means of preserving wealth.

Financials & Oil Continue to Diverge

There has been a rotation: the yen carry traders sold oil, and this prompted a sell off in the energy shares. They bought housing, financial, consumer services, retail, real estate, private equity, preferred and mortgage REITS. Yet this "rally of the dogs" will soon be over. In the linked article, I remark that oil is volatile now for me to trade, I recommend that one day-by-day, dollar cost average invest in gold; the gold to oil ratio is turning around -- gold is now becoming more valueable than oil.

Financials: How - And When - We Reached the Bottom

The author is leading the lemings of the cliff of financial disaster; I hope the information information in the linked article serves as "cliff notes" preserving the wealth of all who take the time to read it.

Market Likely to Continue to Head Lower

Housing and Financials as well as India and Retail rallied strongly as part of the Freddie Mac And Fannie Mae Rescue Rally which came via a rotation of the yen carry traders selling oil to take profits. Yet this "rally of the dogs" will soon be over. In the linked article I recommend that one short sell or better yet day-by-day, dollar cost average invest in gold.

Financial Sector's Best Week in Years

The five day Freddie and Fannie Rescue Rally leaders are financial, IYF, 24%, home construction, ITB, 24%, India, 20%, and Retail 11%.

Everything that is debt, has debt, and is consumer based has rallied strongly over the last five days; and thus is totally unsustainable.

In the linked article, I preseent a number of factors suggesting an immediate downturn; and present short selling suggestions as well as present a case for investing in gold.

Wachovia's Rally & Oil's Decline: Rotation from Energy to Financials?

Great observation, there indeed has been a rotation as the yen carry traders sold oil, and this prompted a sell off in the energy shares. They bought housing, financial, consumer services, retail, real estate, private equity, preferred and mortgage REITS.

Yet this "rally of the dogs" will soon be over.

I recommend that one day-by-day, dollar cost average invest in gold as per the linked article.

Financials Are Having a Dead Cat Bounce

I agree Freddie and Fannie and the 17 other financial organizations that were placed on the "unavailable to short sell list" should be allowed to fail; and that no Fed intervention be made.

Washington Mutual was up 6% on Tuesday. It a long list of other short sellers is available on the linked article. Yet I make a case for investing in gold as well.