Yesterday, MarketWatch argued that gold was soaring in response to a weakening dollar, and that a strengthening dollar would weaken the price of gold.
The correlation seems to be holding as - so far today, the dollar is up, and gold is down.
Stay tuned for a bigger test of the theory.
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Isn't it amazing the way some folks get so passionate about gold.
ReplyDeleteLast night I was fingering my latest buy of eagles. Hmmm, actually not that impressing for 20 grand. But then, no one is counterfeiting them like the fed is the USD. That alone makes them special.
Face it, the dollar has alot of baggage. Some of it is economic and some political.
And with the world's governments money printing like mad, I guess that leaves precious metals as the default store of wealth. It really doesn't matter exactly what the world agrees on as a store of portable,fungible value such so much that there is a consensus. PM's apparently satisfy that better than any alternative.
That is reassuring. At least there is one venue that hasn't been corrupted as yet(of course, I'm excluding "paper" gold from this category).