To the surprise of many, precious metals and commodity prices have continued to weaken since 2011 as the US dollar has been attracting international inflows. As marked in the chart update below, the $83.50 area on the US dollar index (against a basket of world currencies) is the level to watch for a confirmation of this bullish trend for the greenback; and the likely continuation of pain for commodities and commodity-focused economies like Canada, Australia, Brazil and Russia.
There are a couple of factors that may well continue this move over
coming months: contracting world demand suggests further weakness for
commodity prices, at the same time that the US dollar receives relative
“safe haven” inflows from international capital looking for the most
liquid places to park. In addition, in a world of near-zero deposit
rates most places, currency appreciation offers the prospects for
capital gains in the US dollar as it rallies from a 40%
decade-long-decline between 2001 and 2011. With US stocks now priced
for flat returns and ungodly volatility from present levels–literally
return free risk– it is not necessary to hold dynamite for exposure to
attractive return potential as the global economy slows down. But one
does have to think outside of the group-think box.
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As the pallets of new US $100 Bills lay waiting for mass domestic distribution in US Treasury warehouses around the United States one has to feel sorry the Sheeple who can’t see what is happening. The US is preparing for a return to the Gold Standard. It is obvious. It is blatant. And it is almost here.
Again, here’s my full analysis of the new $100 Bills…
The Hidden Meanings in the New $100 Bill
These bills will NOT be released until AFTER the crash.
As for the latest gold/silver slam…it’s great news for all Physical metal holders because it both draws attention to the obvious TOTAL control “they” have over the markets AND it means we are closer to the END than we were before the smash. It should also scare the pants off those holding Silver Derivatives such as ETF’s, Mining Shares, Silver Certificates, Pooled Accounts,etc. knowing that these forms of silver can be “set” to zero by computer programs and the markets shut down.That is a more likely End Game than a moonshot as there will be no paper winners.
The “Smart Money” should be shifting from all forms of paper silver into the real thing in their own possession at this point. I call it “The Big Shift”.
In the long run ONLY physical will survive the coming monetary meltdown.
May the Road you choose be the Right Road.