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

To: NOW who wrote (29511)	8/9/2010 9:40:43 PM
From: Real Man	1 Recommendation Respond to of 71456

It's not weak, yet. IMHO. As I pointed out before, gold safety demand really skyrocketed even as it tanked in the Fall of 2008, but the soaring dollar masked the issue. The second issue in 2008 was speculators fleeing in commodity futures markets including gold. Right now the dollar wasn't really soaring, and gold simply reflected that. Instead, the Euro was tanking, which certainly affected the dollar index (EURUSD is 57% of it). Gold investment numbers are crazy and through the roof. It can't be analyzed as a commodity anymore. Fluctuations of "identifiable investment" certainly drive the price of gold these days. It will soon exceed jewelry consumption, traditionally the largest demand component for gold by far. research.gold.org That said, futures speculators are as long as ever, so gold will always be prone to periodic sharp purges and crashes. They won't quit holding futures, it costs nothing. -g- kitco.com