The more I think of it, the less I like gold near term, and I sold the only gold I had (AUY) today. 2-3 years out, possibly, and especially if the US doesn't begin to get it's house in order.
Golds friend is a weak us dollar. Given that Europe is 6-9 months behind us in this credit cycle collapse, I think euro/usd is a sideways trade at best, at worst, the Euro could go to dollar parity.
More trillions have gone to money heaven than have recently been created, and the creation of money/lowering of borrowing costs are, as you point out, global and do not necessarily favor one currency. In fact, you can make the case for the opposite, which is that coordinated moves from China/Korea/Japan/Australia/EU/UK/US put Chaos in a cage, and along with Chaos, little gold gnomes. |
