Question with the dollar is, if it falls, WHAT does it fall against?
When it falls against the euro, it will happen as we continue to print more currency to pay for all the stimulus packages and reduce the value of the dollar as a result... this is extremely inflationary...
Gold, unfortunately, does not pay interest... in fact, it costs to store. (But you know this....)
Futures contracts don't cost to store, the cost of storage is already included in the price... you don't have to take delivery of it... and as far as gold not paying interest, so what... the interest in minimal when compared to the value appreciation as gold continues to rise... look at this morning's prices of gold and the dollar, BOTH are rising again... when the dollar finally weakens under the pressure of a weakening currency, then gold will move much higher, maybe even overnight at some point at the rate of $100 an ounce at a time...
Goldman analyst just came out predicting a 'sudden and sharp' move upward for oil by the end of the year.
No surprise, they probably read my market commentaries here at SI and then call it their own...<g>
I also expect crude to take off well before this year is out, crude is the next sleeper market after gold... the stock market is dead in the water even with a few spirited rallies sprinkled along the way... obama is going to make it very difficult for businesses to grow, no one will want to own stocks...
GZ |
