Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: koan who wrote (8894)	4/5/2006 7:45:21 PM
From: koan	Respond to of 78412

Excerpt from the article "Gold shoots up on talk that the dollar will weaken" April 4, 2006 By Julie Tay London - Gold rose yesterday as European investors switched funds from the dollar to the precious metal on speculation that the US currency would weaken against the euro. The data, which were released yesterday, prompted speculation that the European Central Bank's interest rate increases would begin to outpace moves by the Federal Reserve. A weaker dollar will boost the precious metal's appeal as an alternative investment for holders of euros. "A strong growing euro zone is negative for the dollar," said Michael Widmer, an analyst with Macquarie Bank. "We are seeing a shift to dollar weakness and some of the traditional relationship between gold and the dollar is coming back." busrep.co.za Regards

To: koan who wrote (8894)	4/5/2006 11:09:41 PM
From: que seria	Respond to of 78412

koan: re: your question--"How can [metals] not hold up?" Via a serious recession, stemming in part from the imbalances you mention right after your question. 1. US must print more and more money. 2. Balance of payments deficit is chronic. 3. US "uses 76% of the worlds entire finances" 4. "How can this continue and what is to turn it around?" I think you've just explained why metals may not hold up. Unless you believe internally generated demand in Asian economies, mainly China, will replace U.S. demand when those greedy buggers in the rest of the world start demanding more than what you say is their 24% of the world's debt(?) flow. I think when the US tanks, everyone else goes down hard too. The factors you list don't even include all the government-induced distortion of price signals and misallocation of resources, plus an ever-more-entrenched U.S. sense of entitlement about having one's cake and eating it too, at personal and governmental levels. I doubt the economy holds together for anything like the predicted duration of the metals bull market. But gold and silver are still good bets because they are anti-dollar plays. Betting against the U.S. government's financial probity is the safest long term, readily made, liquid bet on the planet.