Re: Shorting the US dollar
I dont really want to hijack this thread, as I think there will be some interesting discussions from it...and inflation and the dollar are very good topics to talk about right now, but it is hard to talk about them without talking about gold as well.
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Gold wasn't in the middle of a huge upwards price swing in the 70s until about 1978. So when the huge upward swing started then it only lasted about 3 years.
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Im not sure I see your point here....but gold was up about 60% from its '76 lows by Jan 1978. Are you saying that if a bull market happens fast that thats a bad thing? Are you saying that if it collapses fast that thats a bad thing? Think of traders who were long on the way up and short on the way down.
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Gold has been steadily increasing since 2001. What factors will continue to drive it higher?
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Consumer Price inflation
Oil price instability
Global political instability
Global recession brough on by bird flu, wars, oil, infaltion or deflation etc.
Loss of faith in dollars and other major currencies
Gold Supply and demand imbalances
Rising global savings rates
Defaltion in asset prices
Slowing central bank gold sales
Continuing consumption increases in Emerging markets like China, Russia and India.
Foreign central banks conversions of declining dollar reserves to hard assets like gold.
Growing popularity of gold ETFs and investor demand for the yellow metal.
Maybe a better question is what can stop gold? Central banks are already selling gold, some argue in an effort to stop its rise...if this is true, it doesnt seem to be working too well right now.
There isnt too much bad news out there for gold right now that I can see...but my ears are always open to hear any that you may have.
Bingo
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