Ramsey, <<I am beginning to wonder about currencies and gold>> ...
I suppose a cynic can say that the Japanese is trying to support the Dollar, and the US probably wants the Japanese to keep supporting the Dollar, but neither wants China to tag along for the ride, and yet, they cannot do much about it, as China keeps its peg, unloads its Dollars for resources, and leverages off of Japan to access the USD-space consumers, exchanging J6P home equity wealth for infrastructure that satisfies a 300 year pent-up demand for 1.3 billion folks.
I believe EU is more self-contained than folks realize, and they are happy with their 'slow' GDP growth, high savings, and good social benefits. Should their currency rise, all the better.
<<What will happen to gold if all the currencies stabilize here?>>
... If so, then gold will likely trend toward its cost, USD 280/oz; but it cannot be so, because nothing has changed, the spending and borrowing is picking up.
I think gold is simply climbing a wall of worries.
Chugs, Jay |
