We kept wondering the past 4-5 months when the dollar would end its head scratching rally - last week we wrote that signs of "the" shift were finally afoot, but we wanted to wait a bit longer to see confirmation. [
Dec 11: Dollar v Gold - Can we Trust this Change?] These signs continue and at this point I want to be a buyer of gold, silver - heck even perhaps the Yen on pullbacks. For pure momentum guys I guess you can buy here, but these are "too hot" for me at this point. Even the Euro is firing on all cylinders versus the dollar. To 'save' the economy the Fed made it clear yesterday that it is willing to trash the dollar. The scary proposition for us as Americans is if their campaign will transfer the worry from a financial crisis to a currency crisis. My stomach was rolling yesterday to see the giddy economists on CNBC last night saying the Federal Reserve can buy every asset in the United States if they want - their balance sheet is "infinite". Sure if you want to be USSAR and you want a currency similar to Zimbabwe.
The
Yen is on fire
The
Euro is on fire
The inverse of the dollar is on fire -
UDN
These are our 2 positions in gold and silver from last year
Kinross Gold (KGC)
Silver Wheaton (SLW) - a double in under 2 weeks!
Here is the double long gold ETF - DGP
No positions
The Euro is on fire
The inverse of the dollar is on fire - UDN
These are our 2 positions in gold and silver from last year
Silver Wheaton (SLW) - a double in under 2 weeks!
Here is the double long gold ETF - DGP
No positions
1 comments:
Any thoughts on the dollar.
There is about 10 reasons why it should go down now and zero why it should go up.
The good thing is I think that oil had a bubble of its own, a long term one, that may have been speculation of Bush's foreign policy...seriously. The amount of speculators holding oil was so large for several years and they always made their stay on threats of supply disruptions.
But all other commodities seem to be breaking out. go GOLD!
If oil wasn't so messes up (I think the bubble has a while to deflate) I think that would be booming)
But all other commodities are.
I wonder if there will be a run on the dollar in 2009.
I really think it needs to go to 50s to fix our trade imbalances.
Post a Comment