LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

GoldSeek.com to Launch New Website
By: GoldSeek.com

Is Gold Price Action Warning Of Imminent Monetary Collapse Part 2?
By: Hubert Moolman

Gold and Silver Are Just Getting Started
By: Frank Holmes, US Funds

Silver Makes High Wave Candle at Target – Here’s What to Expect…
By: Clive Maund

Gold Blows Through Upside Resistance - The Chase Is On
By: Avi Gilburt

U.S. Mint To Reduce Gold & Silver Eagle Production Over The Next 12-18 Months
By: Steve St. Angelo, SRSrocco Report

Gold's sharp rise throws Financial Times into an erroneous sulk
By: Chris Powell, GATA

Precious Metals Update Video: Gold's unusual strength
By: Ira Epstein

Asian Metals Market Update: July-29-2020
By: Chintan Karnani, Insignia Consultants

Gold's rise is a 'mystery' because journalism always fails to pursue it
By: Chris Powell, GATA

 
Search

GoldSeek Web

 
Weakening outlook for the US dollar is an excellent reason to buy gold and silver



-- Posted Monday, 21 October 2013 | | Disqus

Currency traders are now expecting the US dollar to weaken with an end to QE money printing kicked into the long grass and new Fed chairperson Janet Yellen unlikely to pick up the ball and run. A short rally in the US stock market after the debt ceiling crisis last week and end to the government shutdown may also prove dollar negative.

Traders say there are a lot of dollar sell orders in the market from foreigners. Holding a currency that is falling is a quick and sure way to lose money.

Falling dollar

Insiders note that the euro/dollar market had found equilibrium around $1.33 on September 17th when the shocker news to ‘no taper’ on QE money printing came out. That sent the market into a one-month consolidation between $1.34-1.36. But the dollar had already been weakening since Larry Summers retired from the race to be the next Fed chairman.

He was the preferred candidate in the White House. Janet Yellen is the woman who once said she would vote for negative interest rates. Mr. Summers could have taken the punch bowl away from the party, Mrs. Yellen is reckoned to have several more in her cupboard.

Gold and silver prices jumped sharply at the ending of last week’s crisis. Commodities in general rise in price as the dollar falls. That is why they are known as real rather than paper assets.

The Chinese have bought record amounts of gold this year rather than buy US paper assets like treasury bonds. They can’t afford to panic the market by selling their existing US bond holdings but they don’t have to buy any more bonds. They are buying gold, and even US, European and Dubai real estate instead.

Major dollar crisis?

How far are we from a major dollar crisis when nobody wants to hold the greenback? It’s rested on its laurels as the world reserve currency for far too long. Markets may be about to test its fitness for this position.

If the dollar is under the cosh then you want to own its antithesis gold. Don’t be fooled by the Fed’s orchestrated gold take downs of the past couple of months. That’s cosmetic stuff that won’t work when currency markets really start to move.

Silver will outperform gold to the upside as it usually does because it is in an even tighter market. Read the ArabianMoney investment newsletter (click here) for our best advice on how to invest in precious metals for maximum returns.


-- Posted Monday, 21 October 2013 | Digg This Article | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2019



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.