I disagree, gold is superior to euro even here
in about 1-2 months, the ECB will be changing again their tune
they will join forces with the USA and Japan in flooding their world with printed money
Mauldin calls it "the competitive currency devaluations"
Europe will not stand for a currency worth $1.10
the appreciation hurts their export business at a time when financial markets wont benefit from inflow of foreign investment funds, except for eurobonds
ECB will fight it with their own debasement plans
that will center on a Monetization Policy to match Bernanke's
in time, Asia USA and Europe will all be very active in driving down the value of their currencies to ward off deflation
in doing so, they implicitly increase the value of gold and commodities
the ultimate winner in dollar, yen, euro debasement efforts is gold
other commodities will benefit
look at it this way
if major currencies are each cheapened intentionally, then what is thus raised in price on the currency front?
GOLD, the mainstay, the stable base, the historical foundation
wait until the Central Bank induced inflation hits the scene
the first wave will accentuate the runup in commodities
the second wave will offer widespread mild renewed price inflation in goods & services
meanwhile, health costs, tax costs, services costs, tuition costs all are rising
they never stopped
with euro rising from 99c to 102c, that is 3%
with gold rising from 320 to 336, that is 5%
gold is winning so far
imho gold will continue to outpace the stodgy staterun currency
/ jim |
