On cnbc the other day someone referenced a dollar investor sentiment survey and said it registered US dollar bulls where at like 8% and it was the first time ever the bulls were that low. I wish I could remember who conducted the survey. Oh and I had a waiter friend of mine text me earlier saying he was getting ready to buy a lot of silver. He didn't even know how much he was going to be paying for it. This sentiment against the dollar and pro precious metals (especially silver) is getting a bit ridiculous.
I'm off to Seattle in a week. I'll be divesting my US dollar portfolio accordingly. Does the Jimmy Hendrix Experience thing qualify as Precious Metal?
In terms of the dollar index, as posted earlier: http://www.chartingstocks.net/2009/09/chart-of-the-us-dollar-1973-2009/ Gold prices are driven by fear and other things - that's not what I'm going to measure the value of a dollar by. I care about how much actual useful stuff my dollar will by me, not how much gold it might get me.
go invest in concrete backed currency such as gold or silver. or you could just do what I do and go buy more guns.. god bless texas:grin:
Yeah, if we only made anything anymore Those of you with faith in the the dollar long term...just keep looking at our debt and let me know how it's gonna be settled. We are Wile E. Coyote chasing the roadrunner off the cliff and running full speed on thin air...everything is fine until we inevitable look down...then boom!
gold prices in terms of dollars are driven by fear - b/c the dollar this past decade has been a POS. but generally speaking, the intrinsic value of gold does not change, as it is simply a constant store of value going back 6 millennia . the number of junk dollars/euros/etc it's taking to buy a given quantity of gold is all that changes unless you're living paycheck to paycheck, this is a foolish mantra to live by
In terms of all the other currencies which are in the floating rate system. The U.S. is on a floating rate currency system along with many other countries. See: http://www.investorguide.com/igu-article-282-forex-basics-the-basics-of-currency-fluctuations.html for more detail. The divine decider is the market (everyone holding a vested interest in the dollar). Change in the prices of Gold are a result of the change of the value of the dollar. When the dollar drops, people exchange their dollars into gold because historically gold doesn't change much in value. It's the dollar fluctations which drive gold prices. For example, if you owned the Houston Rockets for $500 million net worth and the next day the Dollar is worth half (devalues) of what it was worth today, the net worth would double to $1 billion. Now say you sold the Rockets at $500 million and the following day the Dollar is worth half of what it was worth today, you just lost half your wealth. Same concept applies to Gold. That's why you always see stock market jump up on account of a weak Dollar. When Dollar falls in value, gold (and other commodities such as oil) and the market will go up typically.
Rich people are getting richer so there's absolutely nothing to worry about. Everything is as it should be! Poor people are getting more miserable, and rich people are buying another sports car! All is right with the universe!
thank u for re-wording what i just posted in the post above you :grin: also, did u really just try to mini-lesson me with a link to frickin investorguide.com??
Ya, just saw that after I posted. Then why did you ask about in terms of which currencies. Guess you were being sarcastic? Btw, what's wrong with investorguide.com?
would be nice to get a sharp correction going into the summer solstice to flush out the suckers/waiters and get some cheap nibbling prices
sorry my mistake, i assumed u knew i was posting tongue-in-cheek.....in any case, your post's not wasted if someone else here reads and gains from it also i had never heard of investorguide, but looking at it now it's not so bad for individual investors....pls disregard my comment
We actually do make plenty of stuff, and manufacturing employment is growing. Everyone is so reflexively pessimistic, just like they were so optimistic at the peak of the housing bubble. The dollar needs to adjust down as capital moves to emerging markets. This isn't automatically a "bad" thing. World Revs Up U.S. Profits Manufacturers Boom on Global Demand, Spurring Stocks to Three-Year High http://online.wsj.com/article/SB100...76275123886195298.html?KEYWORDS=manufacturing After shrinking by six million jobs, or about a third of its total, between 1997 and 2009, manufacturing employment in the U.S. edged up 1% last year to about 11.6 million and has continued to rise gradually this year. In March, it stood at 11.7 million, or about 9% of total American employment excluding farm jobs. Manufacturing output has been rebounding since mid-2009 from a deep slump. During the first quarter it increased at an annual rate of 9.1%, according to data released Friday by the Federal Reserve. That compares with an estimated first-quarter growth rate of around 2% for the U.S. economy.
