Dollar Still Rising And US Treasuries Still Strong While Gold Falters
Doug Eberhardt | Nov 24, 2011 07:47AM ET
This rise in the dollar can put pressure still on gold and silver prices despite all the problems going on in Europe. It’s a thought process I shared just last week when gold was at $1,780.90 and silver $34.28 with the U.S. dollar index sitting at 77.53. Today we have gold under $1,690 and silver at $31.77.
Mass psychology has seen an increased demand for the dollar as other currencies/countries experience their own internal issues. But we have also seen US Treasuries as a temporary safe haven the last few years. Take a look at the chart of the ProShares UltraShort 20+ Year Treasury (TBT) which broke under 18 today for a 52 week low.
Why would anyone have faith in U.S. 20 year treasuries? Answer: Perception of safety. Of course, if anyone has taken a look at the Fed’s balance sheet, they might believe otherwise.
The Facts/h2
The Super Committee isn’t going to solve anything because they are debating cutting deficits when they need to be debating cutting actual fat from the government. Cutting a trillion or so in spending over the next 10 years means nothing. The economy is unsustainable and anyone who follows Congress closely enough knows they will do nothing but drive the nail in deeper to secure an economic collapse. Anyone who stands up in Congress and speaks the truth, like Ron Paul or Gary Johnson, has typically been mocked or ignored by the media. It is a dangerous game we are playing here, one that our children and grandchildren will feel the effects of. I guess we ignore them too. Cuts need to happen and happen NOW!
Get The News You Want
Read market moving news with a personalized feed of stocks you care about.
Get The App
But since we know Congress is inept and a change in 2012 is irrelevant to the big picture, in addition to the problems the banking system faces, now is the perfect time to dollar cost average into a position in gold and silver. While the dollar does move higher, the opportunity is approaching where we should see a bottoming out in prices. My gut tells me the manipulators will try and wash out buyers one more time before this fall is over. Patience I believe will be rewarded.
The Super Committee isn’t going to solve anything because they are debating cutting deficits when they need to be debating cutting actual fat from the government. Cutting a trillion or so in spending over the next 10 years means nothing. The economy is unsustainable and anyone who follows Congress closely enough knows they will do nothing but drive the nail in deeper to secure an economic collapse. Anyone who stands up in Congress and speaks the truth, like Ron Paul or Gary Johnson, has typically been mocked or ignored by the media. It is a dangerous game we are playing here, one that our children and grandchildren will feel the effects of. I guess we ignore them too. Cuts need to happen and happen NOW!
Get The News You Want
But since we know Congress is inept and a change in 2012 is irrelevant to the big picture, in addition to the problems the banking system faces, now is the perfect time to dollar cost average into a position in gold and silver. While the dollar does move higher, the opportunity is approaching where we should see a bottoming out in prices. My gut tells me the manipulators will try and wash out buyers one more time before this fall is over. Patience I believe will be rewarded.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.