Monday, October 1, 2007

Gold Gold Gold

Dollar crunch puts gold centre stage

THE dominoes are toppling. What began as a credit crunch has turned into a dollar crunch. We are witnessing a run on the world's paramount reserve currency, an event that occurs twice a century or so, and never with a benign outcome. The US dollar has fallen through parity against the Canadian dollar and plummeted to all-time lows against a basket of currencies. This is dangerous. None of the mature economic blocs seems able to take the strain, let alone step in to restore order.

Posted by sold 2 rent 1 @ 10:12 AM (3193 views)
Please complete the required fields.



11 thoughts on “Gold Gold Gold

  • waitingfor hpc says:

    Ok – I agree. But how can I buy gold easily? Without fear of being conned? And what currency should we be holding I am 100% Sterling at the moment.

    Reply
    Please complete the required fields.



  • Firstly, I am expecting a small short term correction to $700 for gold. When all the mainstream press is expecting the dollar to collapse and gold to soar then the market may surprise in the other direction.

    I haven’t bought any physical gold yet but I am going for the leverage play with gold mining stocks.
    I have investments with MERRILL LYNCH GOLD & GENERAL unit trust for the large cap gold mining stocks.
    Also I have an interactivebrokers.com account in CAN dollars so I can trade on the Toronto Stock Exchange and buy junior/exploration gold stocks

    2 great websites with free and subscriber information are
    http://www.zealllc.com/
    http://www.resourcestockguide.com/

    If you are serious about gold/gold stocks then you should spend some time reading up about the subject.

    Reply
    Please complete the required fields.



  • David Smith's Sub Prime. . . says:

    Bernake,

    Lower interest rates a bit more for your mates on Wall Street,

    Who knows we may even get our Empire back shortly…Lend Lease anyone?

    Reply
    Please complete the required fields.



  • I think the BoE will cut IRs shortly, else the rate will go to £1 = $2.10, and all our exporters will find it difficult to sell in countries with a $ parity agreement!

    Reply
    Please complete the required fields.



  • It’s great to see the mainstream press finally clamber aboard the gold train. Ambrose Evans-Pritchard is still one of the more avant-garde analysts; in general the Telegraph’s business section beats the Times / Guardian / Indy hands-down, no matter what you may think of the paper’s political views. The Times won’t pick up on the gold story for months yet and eventually the idea will trickle down through the population until even the shoe-shine boy tells you to buy gold. This means the short- and medium-term prospects for gold are looking very good. If you’ve sold-to-rent, or are sitting on savings for a deposit, gold is a pretty good place to be right now.

    Reply
    Please complete the required fields.



  • tyrellcorporation says:

    Alan, surely the remit of the MPC is to primarily target inflation – I’ll be pretty hacked off if they cut rates because I see no real evidence of the economy grinding to a halt or inflation dropping off to ‘forget about it’ levels. They’ll be keen on a strong pound for now as it reduces inflation – exporters will be left to suffer for a while longer I reckon.

    Reply
    Please complete the required fields.



  • i agree with Alan, they will find a way to justify dropping IR

    Reply
    Please complete the required fields.



  • Rocket Robbie says:

    i agree with Alan, they will find a way to justify dropping IR

    Reply
    Please complete the required fields.



  • rocket robbie says:

    I agree with Alan, they will find a way to Justify dropping IR

    Reply
    Please complete the required fields.



  • Alas TC, Alan is probably right – watch for the unfeasible low inflation figures followed by a swift cut. Any export problems to $ counties are at present being offset by the £ to € rate.

    Reply
    Please complete the required fields.



  • David Smith's Sub Prime. . . says:

    If the Chinese pull the US currency, they will have problems….

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>