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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: The Wharf who wrote (9152)6/20/2008 12:44:27 PM
From: RockyBalboa  Read Replies (1) | Respond to of 71405
 
Long term yes only if the increased costs in gold producing countries sees no relative "deflation". The cost effect through a currency apprechation can be subpar.

Meaning: if the USD devalues against the currency from 1 to 0.5 then inflation in the country might be below relative to the inflation in the US. So, the cost of gold production will not rise proportionally.

This also explains why an area with a large gains in its currency (e.g. EUR) may stay competitive for a longer time period.



To: The Wharf who wrote (9152)6/23/2008 7:08:48 AM
From: RockyBalboa  Read Replies (1) | Respond to of 71405
 
If "stars align"... then Oil goes to 145 this week. It is always a tough trade and requires lot of loss taking skills but it can pay off big time.

Dollar strength does not mean automatic selling of oil anymore. By next week half of Europe is on holiday and this means gas consumption is increased.


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