"We are literally about half a point from seeing the US Dollar break its single most important support level. Here, eighty is the magic number, watch the USD fall below 80 and you have witnessed the beginning of the end of the dollar and the dawn of a terrific run in gold prices that will take the yellow metal to an all time high in a surprisingly short period of time."

Click here.

I agree that the dollar is "JUNK" however I question if GOLD is anymore predictable/secure as a way to postion/protect oneself against the dollar. In that regard I feel the Euro/Pound in hard currency (not FX) is a much better tool.

Of course the metals dealers think the dollar is shit and gold is going to burst. Take that report with a ton of salt.

I'm at the point of seriously considering taking my LIFESAVINGS out of the DOLLAR. Shopping for european banks with online access. One thing to talk about it a another thing to DO IT. Sure seems risky but so does the Dollar.

If I had to select a currency I think the Canadian Dollar would be my first choice. But I'd really think about a mix of Rand/Yen/C$/Ruble. Cato I don't know about salt, it just might be better then the US$ in the long run.

(Message edited by wombat88 on July 20, 2007)

Canadian dollar? I think it was Trudeau who said Canada was like sleeping with an elephant (the US), you do what you can to get comfortable, but if the elephant so much as twitches ...

I tell ya, tulip bulb futures is the way to go!

I would give that about 0% credibilty, those types of advertisements are very common and in the overwelming number of cases are worthless.

Bluelight, although the rand is doing nicely against the green back, it’s at an 11 month high. It is still performing weakly against the basket of currencies, pounds yen ect. I would recommend buying gold, the strike season has started in South Africa, everyone from teachers to dustbin men have been on strike so it’s just a matter of time before it’s the mines turn and that always results in a bump up in precious metal prices.

The US Government is quite happy (contrary to the author's view) to let the US$ fall further at this point. There are two reasons for this -
First, we have a gigantic US$-denominated current account debt. It's real nice for us to be able to pay that back with Dollars that are worth less. Second, a weak dollar stimulates the exporting sector of our economy which helps keep unemployment low.

While other central banks have raised their short-term interest rates in recent months, the logical response for Bernanke and Co. would be to raise our rates in turn. Why haven't they done this? Because they want a weak Dollar. (Admittedly, they also don't want to make the Sub-Prime crisis any worse than it already is).

I have been reading articles from patrick.net, itulip.com, mortgage implode-o-meter, and a few others. I don't see a good ending to this story. This subprime looks real ugly and this mess is gonna be here for a while. Heres some pretty crazy videos I've seen from youtube.

http://youtube.com/watch?v=2fsR5hBS0tM&mode=related&search=

http://youtube.com/watch?v=kAXLdaV_QJ4

http://youtube.com/watch?v=pDbgUVM98YI&mode=related&search=

Many US based companies with overseas operations make a windfall when converting overseas revenue/profits back to dollars. Good for the corporations but sucks for the rest of us.

I can see the rationale of weakened dollar theoretically helping US export sector. Problem is US exports are a very small part of overall economy plus what we primarily export are not labor intensive goods, so it may be good for select exporters but I don't see it having impact on overall unemployment levels. We import much more than we export, and weakened dollar just makes what we import more expensive.

A good article about current economic situation

http://atimes.com/atimes/Global_Economy/IF14Dj01.html

The Dollar has been on a long decline, but is it crashing?

This weekend the Dollar was worth less than 1.90 Reals, under 30 Baht, and worth less than .74 Euro's per 1 USD.

Even the mainstream media has started to report about how week the USD is compaired to the Euro.

RG.

The old saying goes to see into the future one has to look to the past. Reading different articles and discussions around the net I came upon this theory and I had never thought of. Seems like this is as good of audience to discuss it as any. The idea is that the US financial situation is on the same road as Germany just after WWI. Instead of "war reparations" our downfall is “Over the Counter Derivatives”. If you can assume this as our starting point, then what was life in Germany like during the 1920s? The Metropolitan Museum of Art is currently hosting a display about life in Germany during the 20s.
http://www.metmuseum.org/special/glitter/doom_more.asp

The part of it that I had never thought of, is the mongering angle. here is a summary:

The massive number of orphans and widows without a means of feeding themselves resulted in prostitution on a scale not seen before in Germany. Additionally, the repeal and relaxation of laws forbidding prostitution, homosexuality, and other 'moral vices' led to an explosion of an underground culture, with people enjoying pursuits not available in other European Cities.


Wouldn't it be funny if this is repeated here in the US under the watchful eye of the religous right headed by the Bush camp in DC? It could even be argued that it was the Bush policies that lead to the issues which caused the problems. Maybe in my lifetime going to the Mall will have the same meaning in Phoenix as it does in Copa?

Think about the good side of our collapsing dollar. Jobs will start coming back from China!

We absolutely must rid our nation of these make believe fiscal conservatives from the republican party.

Gold priced in US$ has increased 8 years in a row and is the best performing asset class this decade. It is surprising how few recognize this.

While the dollar index is again near 80 and the sovereign problems mount, gold is just shy of $1300. The yellow metal moves quietly forward with the potential for gains 10 years in a row.

I would not get on the gold bandwagon, if you own some now that's great, but I would not go out and buy into gold shares or any of that nonsense, it's just like the housing and internet bubbles. Those were created by people that knew when to get out and let everybody else fall over the cliff.

If you look at the price of gold adjusted for inflation, it really does not look like much of a good deal to me, unless I am misreading the charts.

<a href="www.marketwatch.com/story/golds-next-hurdle-is-80s-inflation-adjusted-peak-2010-09-24?reflink=MW_news_stmp/" target="_blank">www.marketwatch.com/story/golds-next-hurdle-is-80s-inflation-adjusted-peak-2010-09-24?reflink=MW_news_stmp/</a>

Public is not interested in gold and they own very little, so this is very different from TECH & RE bubble. If gold were in a bubble there would be much discussion and backslapping on this site. Most people are selling their gold because they are unemployed and destitute.

Most people are selling their gold because they are unemployed and destitute.

Are you living in the same trailer park as Beachman?? Where I am at the economy is recovering nicely. We are adding people to our workforce, and I can't tell you how often I have had to tell a customer to come back some other day because we are too busy to help them.

A couple of years ago I could take a week of unpaid vacation, now don't even ask for any vacation unless you scheduled it at the beginning of the year.

It sucks if you are on a fixed income in USD living in a foreign land. The weak USD is going to hurt you a lot more than a guy like me that goes on vacation for a few weeks at a time. At the same time a weak USD means that US manufacturing can sell a lot of goods overseas at a lower cost and turn a better profit.

You made a comment how gold is a bubble like the internet and RE, which is what the media has been spoonfeeding people for the past several years.

The simple point that I was making is that I see very little interest in gold with regard to investment potential, therefore simply excepting the media view that it is in a bubble is quite wrong.

In the Tech and RE bubble EVERYBODY was going it...little old ladies, bartenders, strippers, interior decorators, teachers, beauticians. They talked about it for years before the bottom fell out. They backslapped and hifived about how smart they were. Now many are paying the price...millions have lost everything due to the RE bubble and it will continue for 3-5 more years.

Hope you can understand this simple concept and would you mind sharing what kind of business you have?

Your right everybody was doing it. A lot of it was simple greed and manipulation of the masses. What do you think paid for the economy during Bush 2? Dumb people that were greedy doing refi's of their homes and thinking that they were worth more than they really were. That pumped up the housing market. If I had been really smart I would have sold my place in 2008, rented for 3 years and then bought another home. I would have made a shitload of money doing that, and I'm sure some of the smart folks did.

As far as what I do.....not on the net.

Gold is up 10 years in a row and above $1400 now. New highs achieved this week for both gold & silver....a great bull market with very little public participation.

Middle East fuse lit....

The American dollar is the leading currency in the world. The Chinese Yuan is pegged to the American dollar and follows it around like a dog. If it goes up the Yuan is right behind. If it goes down, the Yuan goes down. This is what the U.S. government is complaining about and it wants China, for example, to allow its Yuan to float and reflect the true value of the Chinese economy.
The Chinese in turn, one of the leading creditors holding US debt has made efforts to turn this debt into copper purchases and now has a huge store of this metal. Because of this, the price of copper has hit new highs. Copper is wanted because it is one of the world's most versatile metals.
The price of gold, it is argued, is controlled by the US. All the economies base their economic fundamentals on the price of gold.
In the past, there have been challenges to the US lead in world economies. Japan, for example was one country which tried to surpass the US. It failed.
The US would like to see a lower dollar and its performance is closely controlled. However, sooner or later, when a country prints dollars without having underlying values, inflation sets in and the currency becomes devalued. This can quickly go out of control. If this situation arises, the US will reset the price of gold higher (or lower) as the situation demands.
The more dangerous threat to the US economy is the price of oil. If the price of oil remains too high,distribution costs will rise sucking important economic dollars out of the hands of the consumer who then will be restricted as to the quantity and quality of the purchases available to them. This in turn will create a sales slowdown which then leads to closure of manfacturing and other value added operations resulting in a loss of jobs and an economic downturn.

Dbonar, what you just described - the US resetting the price of gold higher or lower depending on inflation - makes very little sense.

The price of gold can be and is controlled not by sales of the metal itself but by certificates and other fiat representation. These products are sold through the stock markets and bourses throughout the world. Gold would be controlled similiar to money. When your dollar is devalued, you would buy up the market excess to raise its value and when you would like to lower it's value you sell your dollars on the open market.
At the moment, there are very serious arguements regarding the control of gold prices. Gold prices have been in lock-step with the Dow Jones (shown as statistically significant by a number of well known financiers) for some time now.

Dbonar when you buy a certificate or fiat representation you are not buying gold. The online slang calls it paper gold, slick salesmen call it a gold representation. It has some relation to the price of gold but I haven't been able to figure out the relationship. I'll agree with you that the US Gov controls the price of this "paper gold" but not the price of gold.

The prices of "paper gold" are reflected in the market (stock) price of gold. There are no secondary markets. i.e. a certificate is purchased for $1500 accurately reflects the value of gold as it is quoted on the stock market.
If the certifcates flood the market, the price of gold will be driven down. If the paper gold is not accurately pegged there would be chaos and since the only guarantee you get with the paper gold is based on your faith that it will be honoured by the institution selling it i.e. bank or broker you take your chances. Paper gold can be quickly moved around and exchanged like money while the movement of real gold would be a challenge. In addition, there has to be somewhere you can sell your gold such as a stock market or a bank will buy it back.
In short, paper gold is fortified with the exact amount of gold it represents, you cannot continue to sell paper, it has to be on a one to one basis.

Dbonar remind me to never ask you for investment advice. You have no idea what is going on in the metal markets.

Bluelight: With a negative reply to do you think your assumption provides the reader with the insight of seeing you as being knowledgeable?
Do you think there is no value behind gold certificates? Do you think people store their wealth in paper representations?
I deal with the Toronto Stock Exchange which is mining driven. I should explain, mining means metal.

Dbonar: I ok with letting the reader decide for themself on my body of posts for the past 10 years. Until you exchange those certificates for gold or silver you can put in your pocket you are banking on the "good faith and credit of some 3rd party". If people want to trust some unknown 3rd party with the wealth they have spent a lifetime acquiring then they deserve what is coming to them IMO.

I think maybe you should investigate who you deal with alittle better. According to Standard & Poors the TSX Coposite which represents 95% of the Toronto Stock Exchange is made of up 27.4% Energy, 29.1% Financials, 6% Telecon and 3.3% Info Tech, that's about 66% of the market that doesn't have much to do with mining. It looks like mining accounts for 17.5% of the market. WOW, looking at the breakdown 5 of the top 6 companies aren't in mining. Only Barrick makes the cut. Funny how the one company that is loaded with ex-politicans grows to such a large company? I wonder how that happens? Maybe alittle corruption? If mining means metal, what is potash? The 8th largest company on the TSE.

The term composite means exactly that. It is a representation of sample stocks from across the board. The TSX, its history and present day operations are based mostly on mining.
If you query how gold can be bought you will find the various methods it is sold in. All fiat representations must have some basis in the metal itself. The buying of these certificates and other, plus the puts and calls on the London metal exchange determines the price of gold.
I do not know where you picked up the composite index but rest assured it does not represent the entire exchange, only a sampling of it. Some indexes are low as 60 companies, some are at 300. There are more than 5000 companies listed on the TSX and the Vancouver exchange the bulk of which are junior mining companies and junior oil exploration ventures.

Have you heard all these "END OF AMERICA" advertisments on RADIO and TV?

Send $49.95 to STANSBERRY and he will fill your email inbox with 3 or 4 insights daily.

The price of SILVER is still quite reasonable in historic terms, so that might be a safe haven.

Unfortunately most of my savings are tied up in my employers 401k plan that I cannot cash out until I quit my job or get laid off.

The 401k is another FUCKING REPUBLICAN SCHEME to put your MONEY someplace where they can STEAL IT!!

Gold is now approaching $1500 and silver moved through $40 this week.

Cobra if you have a solid source where I can buy gold for $1500 could you place it in my Inbox please. My best dealer is asking $1525+ depending on quanity. Thanks.

I don't think Jim holds the same opinion of Bernanke as the puppet does.
------------------------------------------------
http://www.commodityonline.com/news/Jim-Rogers-Dollar-will-be-debased-gold-and-silver-to-hit-new-highs-37874-2-1.html

Daily Bell: Is the stress getting to Bernanke? Is he becoming unbalanced?

Jim Rogers: I don't know that he was ever balanced in the first place. He's never been right about anything. If you go back to the people who have been doing research on Mr. Bernanke's projections and statements, they'll tell you he has never been right about anything. He's always been unbalanced, if you ask me. You might find a time or two when he was right about something, but generally he doesn't have a clue.

Daily Bell: Is Bernanke actually trying to ruin the dollar so that the IMF can usher in a world currency?

Jim Rogers: No, he's not that smart. The IMF is not that smart. They are not smart enough. That's a conspiracy theory that assumes these people could work together. No, he actually believes in what he is doing and he believes he's going to save us all.

Still listening to those pundits are ya ???

Gold comfortably above $1500 this week and silver moving up to $50. If it was real estate or tech stocks I guess everybody would be backslapping and chestbumping. Silver up over 150% in 6-7 months.........fucknA bro.

Hope you step off that ride before the bubble bursts. Look at your post..."real estate" "tech stocks" for people to make money in stuff like this others have to lose!

Gold moved above $1600 today and silver is back above $40, maintaining HO purchasing power.

Some perspective.....

2000 - $273
2001 - $279
2002 - $348
2003 - $416
2004 - $438
2005 - $519
2006 - $638
2007 - $838
2008 - $889
2009 - $1148
2010 - $1226
2011 YTD - $1600

Everything but bonds crashed in 2008 and gold finished that year higher.

Gold surpassed $1700 today while the DOW was down 636 points.

Good ole Jim Cramer put out a piece "10 reason to buy Bank of America" back in Jan 2011. The stock has dropped over 50% since then and looks like it is going off the board. What a fucking shitbag frontrunner for his hedgefund brethren......tepper, paulson.

And the dollar was up today as well, which is weird when it's running with gold.

Yes Cato, the same thing occurred on Thursday's big drop....both gold and the dollar were up. Treasuries denominated in dollars are the traditional safe haven and gold is regaining its status as a true currency free from the liabilities of an insolvent goverment.

Even I was surprised by the quick move to $1800....key level $1764 breached...some selling in order.

Europe and its currency lie in the hands of the German Bundestag.

Gold traded above $1900 and silver looking good today after a bit of a pullback.

Dollar could get a nice bounce if the financial crisis continues.

Global markets need $3-$5 trillion in FRESH stimulus to keep the stock markets from crashing....which is GOLD positive.

A few key banks made new 52 weeks lows today, including Goldman Sack.

Another year higher finishing around $1555...up 11% in 2011.
Even after 11 straight years in price appreciation only 1% of global investable assets in gold.

Cobra887, have you ever read "another"? http://www.usagold.com/goldtrail/archives/another1.html I've been rereading his writings and am amazed he wrote this stuff 14 years ago.

Gold finished 2012 higher...price was $1664, a 7% increase.

12 positive years in a row and so few people own any.

I remember 10 years ago when Kudlow said it would never go above $400.

Will likely see a move above $2000 this year and above $3000 in 3 years.

Dow Down 50% Against Gold Since Last Record Dow in October 2007