Gold, Dollar and Euro: A Love Triangle into 2010

asiablues's picture

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Anonymous's picture

My view is that the Obama administration has warned that if the debt ceiling is not raised, the government risks default as early as New Year’s Day.Democrats have estimated that to get through the 2010 elections, Treasury needs to have the debt ceiling raised by as much as $1.8 trillion above today’s $12.1 trillion cap.
Regards:replica purses

eblair's picture

Moving to Europe where I'll be spending Euros obviously.  Have a small nest egg.  Should I keep in USD?  Put in Euros?  A buddy says buy gold?  Should the gold be in euros?  Or dollars?  Netanyahu seems to be trying to form a war government reaching out to Livni so I guess that means gold is good.   I'm no economist so any help would be really appreciated.

Anton LaVey's picture

Gold. Physical gold. Buy bullions.

Disclaimer: as everything else that you can read over the Internet, use my advice at your own risk. I may know what I am doing. I may have no idea. Do your own research. Then decide accordingly.

Anonymous's picture

Help me out you guys. Moving to Europe where I'll obviously spending Euros. I have a tiny nest egg in dollars. What should I do with the nest egg? Keep in dollars? Put in Euros? My buddy said Euro backed gold.

Anonymous's picture

Asset prices are headed back to 1980.

Gold should maintain its value, relatively.

You're better off hoarding food and toilet paper.

If you live in a big city on the coast, get the f* out while you can.

Anonymous's picture

There's no way they can stop the money supply from vaporizing.

Everything will fall as the deflationary collapse intensifies - including gold.

Buy gold and silver when the supply chain bringing food to the big cities on the coasts breaks down. Not before.

order6102's picture

amazing part is. EUR is same piece of sh*t as USD, JPY is junk backed up by insolvent govmnt. GBP - ccy of govt that has no money left... So, long AXJ... short everything else... this where 1/2 of planet ppl are from anyway, and if you in love with G7, then AUD, CAD and CHF...

And gold? WTF is gold... go for PT, PD, RH. if gold goes up - they will, but if gold doesn't they will anyway... And btw you can make AU from PT, try to make PT from AU...

DosZap's picture

Really, when we see the NEW open ended, OPEN CHECKBOOK policy to FM/FM, the exponential off the charts growth, QE is a joke, and when it get's down to it, does it really matter if you pay a hundred bucks or two more NOW, or wait for something that may never happen.

 And, even if it does, what makes us think it will be physicaly available then?. The rest of the world, is starting to wake up to the END GAME. The USD as a safe haven, is a freakin joke,long term.(really NOW), it's just a BAD habit.

No matter what happens to the U.K., or any other country... This dog is not going to hunt much longer.

Emmanuel Goldstein's picture

It's a fairy tale told by the GS Fed that the GDP grew over that quarter.

The calculations leave out the rise on food and fuel costs. Had these been included there would have been negative growth.

Anonymous's picture

"If you must make predictions, make them often"--Mark Twain

Crime of the Century's picture

"To have gold is to be in fear, and to want it to be sorrow."  ~ Johnson

I don't listen to johnsons

Crisismode's picture

You will be listening when your digital assets are worthless, and your neighbor is feeding his family because he can barter silver and gold coins.

Crime of the Century's picture

I reject the first part of that statement, and was being sarcastic in that I don't know the attribution. Simon Johnson? I say, have faith, and buy gold (PMs) as insurance. You don't insure your home because you are in fear. Why is wealth any different for one who isn't consumed by greed?

Anonymous's picture

so many people with such a high conviction of gold going up... my $ is on the short side.

Kreditanstalt's picture

I don't expect this highly artificial dollar rally to go past about 80-82 on the DX.  Why? 

a)fundamentals just too too awful,


c)Funds under management are just DESPERATE for returns exceeding the miserable offerings on "safe" government debt.  They're forced into the casino of the U.S. stock markets, as are we all.  And so far the casino is paying more than 0.25%p.a.

d)foreign holders are likely less leveraged and in better shape and are busy DIVESTING themselves of dollars on an ongoing, longer-term basis.

You don't have to be a goldbug to see why the metal will be last man standing.

Anonymous's picture

unless we have a complete collapse in equities and a major disaster gold will not be seeing 988 anytime soon.
sweet jesus

Grand Supercycle's picture



The dollar rally I forecast some months ago continues to trend UP.

The weekly and monthly dollar chart suggests this may be a MULTI YEAR rally.

U.S. TREASURY 10 YR daily trend is bearish - suggesting higher interest rates.

Anton LaVey's picture

Short-term rally... Perhaps.

Multi-year rally? Everything is possible, but that probability is so far off into "improbable" territory it's not even worth considering.

Food for thought:

Crime of the Century's picture

The weekly and monthly dollar chart suggests this may be a MULTI YEAR rally.

All aboard the Fiatsco Express™ (hope that's a coal fired locomotive!). I guess if that's the case, Ben & Timmy should turn it up to 11.

DoChenRollingBearing's picture

Well maybe I'll buy some more TBT to go with my gold.  TBT for speculation, gold to preserve my a**.

Anonymous's picture

Kreditanstalt, you are so very.....

Kreditanstalt's picture

I have a feeling that @$1077/oz. marked the low.  Each day last week we saw the 12-noon-GMT-to-US-market-opening gold plunge, but each time buying from the rest-of-the-world rectified that.  That was one of Jim Sinclair's possible scenarios for the near-term gold price, wasn't it?  That this was the bottom?  I myself bought more last week at $1085.

Someone has desperately, almost grubbily been trying to sell gold down but they have not succeeded.  They CAN'T succeed long-term, or even medium-term. 

We also have to differentiate here between the paper COMEX and ETF prices and the price of the real metal.  Look for a divergence some time early in the new year.  How will it manifest itself?  Are we still seeing slight but continuing backwardations?  Is the physical market still tight?  Also, exchanges have lately been copping out by allowing for the settling of contracts in paper...

As long as those conditions are in place, the paper gold price is MEANINGLESS.


Anonymous's picture

It will all end when confidence fails. What will it take for confidence to fail?

Anonymous's picture

Haha, gekko trying to get buyers for his losing positions.

mojine's picture

They are not positions. They are possessions - and I'm not selling.

anarkst's picture

"No, it is illogical to conclude that the buck's rise from near rubble is due to material improvement in the fiscal or monetary conditions in the U.S. Rather, it is the decline in the euro and some other key currencies has accelerated due to substantial weakness as compared to the Dollar."

I believe that markets rise and fall based on the effectiveness of the system's abilities to sell their lies.  It seems improbable that anybody with an IQ over 50 could believe any of the non-sense put out by the fascist coalition.  


"The Federal Reserve's announcement that it would keep interest rates low and money cheap for an extended period makes it almost inevitable that the Dollar will continue to weaken."

Right, just like the Yen.

Anonymous's picture

The only question I have is when will Israel/USA bomb Iran next year or the year after ?

hidingfromhelis's picture

My bet's on 2010.  War isn't just peace any more; it's stimulus.

Rusty_Shackleford's picture

Yeah, and now with electrolytes and antioxidants.

Anton LaVey's picture

I would have said: "War = Stimulus... Chunky style!".

Sorry. Disgusting, I know.

A Man without Qualities's picture

"The trade has also been supported by a steepening of the spread between the yield on the U.S. 10-yr note and the 2-yr note. The markets take this steepening as an indication that the economy will continue to recover."

There has been significant steepening of the Greek bond curve as well, but the market does not see that as a sign the economy will continue to recover.  Is this a sign of the US exceptionalism, or maybe just economic propaganda?

Anonymous's picture

Do you always buy things when they (medium term) peak??

DoChenRollingBearing's picture

Already. Have.

Will. Buy. More. Next. Week.

TheGoodDoctor's picture

And/or silver. More room to run.

Anonymous's picture

Did last week.