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The US Dollar and oil – Will either of these be the black swan?

March 5, 2015

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85 Comments
    Mar 05, 2015 05:31 AM

    One thing really puzzles me immensely. US dollar is making decade highs. Every time dollar rose in the past, some economists would point out the damage a strong dollar will do to the US economy and trade. With the increase of the dollar, that opinion got stronger. However, this time around the economists with the right mind seem totally silent regardless in main stream media or alternative media like this. People are cheering the strong dollar. If a strong dollar does not hurt US economy and trade, what is the fuss before? Why do other countries intervene when their currency become strong. These countries range from biggest exporter China to Sweden, Switzerland, etc. With the record amount of trade deficit and disappearing US manufacturing jobs, the strong dollar is proven to be harmful to the US economy. Manufacturing will go go opposite to what Obama has promised to US public. What is the cause of this unanimous sea change of public opinion about strong solar? Are economists as a group dumbed down totally in a few short years or propaganda has taken hold and opposition opinion suppressed?

      bb
      Mar 05, 2015 05:57 AM

      Lawrence.
      In the past the U.S. had lots of manufactureing, a strong dollar made those products expensive to other nations reducing employment and profits in the U.S.

      Now, manufacturing is elsewhere, not in the U.S., strong dollar equals lots of cheap goods, not so many jobs to harm now.
      With no jobs in the states, its to the advantage of U.S. citizens to be able to acquire what they need from support cheques.
      Imagine the riots when the dollar weakens. LA is protesting the police killing 1 person per week, not such a big deal, starve to death = big deal.

        Mar 05, 2015 05:08 AM

        Lawrence, bb makes a good point. The US is a service/welfare economy now. I think the dollar will continue higher until everything falls apart. Now, I don’t know how gold will react but I wouldn’t be surprised if it heads higher alongside the dollar.

          bb
          Mar 05, 2015 05:23 AM

          Chris, just mentioning, gold could do nothing, it might not do anything until a gold backed currency is introduced. (then those math calculations might be worth reviewing)
          All the western governments need do to limit golds desirability is tax it to an appropriate level for a desired affect.

          If a person had the means, not owning gold within the west might be wise.

            Mar 05, 2015 05:31 AM

            Good point!

        Mar 05, 2015 05:02 AM

        bb, a large nation like US is very dangerous without competitive manufacturing. It means that the whole population relies on goods made somewhere else and only export is paper. A small country like Fiji can get away with it since they got tourism. For all nations which have dominated the world or regions, they did it by making better and cheaper stuff than others. They lost it due to their products no longer competitive with others. This even applies to war, the one better in manufacturing wins the war.
        The trend is not US friend. I remember Obama promised to bring something like 10 million manufacturing jobs to US in his term. Now 1.5 terms have passed and he even categorized Macdonald as manufacturing, the manufacturing job is still in decline. If you look at all industry areas, US is no longer dominant in almost all the areas. I listen to Jim Puplava’s show every week. He keeps claiming robotics is replacing human in manufacturing, it is the reason why manufacturing job is not growing with remarkable onshoring of manufacturing jobs to US. He assumes only US is good at robotics and technology and others are just hard labor. It is far from the truth. US is no longer the supreme leader in space, aviation, communication and all the manufacturing areas. It cannot even launch rockets now. This year even China has started to ship large commercial airliners, so you get both Europe and China challenging the supposed to the cream of the crop of US manufacturing.

        Mar 05, 2015 05:25 PM

        Great question Lawrence and great answer bb. I agree with you that the U.S. is so much a consumer nation that now import are cheaper. That being said it is never good for a country to become strictly an importer. This is the fundamental flaw in my eyes with the future of the U.S. Without building any sort of manufacturing we are so dependent on industry like tech that can help efficiencies but not actually build necessities.

        This is a great discussion point. Thanks again Lawrence.

          Mar 05, 2015 05:57 PM

          Thanks for the comments Cory.

          No country has the right to become a consumer society. One country is cosumer means some one else has to be producer. Just like some one on welfare there will be someone paying tax. In a country, government enforce this inequality by force. However, if the government does not enforce it, the welfare guy starves to death. In international community, there is no law.

      CFS
      Mar 05, 2015 05:51 AM

      Lawrence, Although some people/companies/countries are moving into the dollar for “safety”, don’t forget the dollar index is also partly an inverse euro index.Greece is causing major concerns that the euro itself might collapse. Thus euro going down plays a part in dollar index going up.

      Mar 05, 2015 05:00 AM

      Dear Lawrence,
      Interesting point you make about the lack of comments on the effects of a strong dollar – but I wouldn’t rule out cluelessness as the reason.

    Mar 05, 2015 05:39 AM

    There is a good article in Goldseek explaning the Chinese gold demand. It is more in line with what I know.

    It says that the 2200 tons in 2013 (and 2150 tons in 2014, my comment) withdraw from Shanghuai Exchange is the the true industry demand plus investment demand in China. The demand for jewlry export is going through a different channel and gold lease amount stays in the exchange. In addition, the central bank buying is not going through the exchange. The domestic production are all purchased by central bank. This amount are stored at the vault of several commercial banks on behalf of central bank waiting to be transferred to central bank every few years so China does not have to report a bigger central bank gold holding.

    http://news.goldseek.com/GoldSeek/1425565324.php

      bb
      Mar 05, 2015 05:10 AM

      There is an interview with M.Faber at goldseek as well.
      Mr Faber sounds like he thinks the currency war is hogwash, doesn’t exist, he figures the banks all over the world are merely coordinating stealing everybodys wealth.
      Guess “the currency war” was created for those of us that are “well informed”.
      Would fit their mo, divide the people, have them bicker and debate.
      I have read of this tactic used as far back as Constantine, used before then Im sure.
      My point of course is just, maybe we are all just suckers.

      They do control the media, who is to say they don’t control the net? It was the American military that came up with it.
      Im gonna go shine up my tinfoil hat I think.

        Mar 05, 2015 05:25 AM

        No tinfoil hat required bb. They all know this is the endgame so are filling their pockets as quick as they can before the opportunity is gone. This is just about squeezing the last bit of juice out of the bottom of a multi-century bottom in rates and all these antics to save the sytsem really do amount to a wealth transfer which most here cannot participate in. So yes, Faber is correct….it is organized theft.

          bb
          Mar 05, 2015 05:33 AM

          Geez Bird, I don’t think I like that you agree with Faber about that.

            Mar 05, 2015 05:29 AM

            BB…..I am cynical, but I am also a realist. There is clearly an element of opportunism at play in the markets these days. It is much worse than the dog eats dog scenario that typify a healthy competitive market. More like dog eats injured handicapped pigeon actually.

            Look, the vast majority of people have no idea whatsoever what is about to take place in the economy. Hell, some of us here struggle with how bad it is beginning to look and may even mutter “this cannot be happening” from time to time. But it is happening and it is that bad no matter how much we would like to block it out.

            Nor do most people understand how most of the markets or financial system functions during good times let alone the consequences of the bad. But this is going to be a historical bust. And so almost everyone you know are sitting ducks. The vultures are going to eat them alive as the system grinds down over the next few years.

            What do you figure all those rate structured derivatives are all about. Or that funds are fully invested and sentiment indicators tell us that the market is swung so far bull-tard it is at historical extremes. Nothing less than the fattest of opportunity awaits as pension money itself evaporates and then reappears in the pockets of those who will be on the winning side of the trades once the SHTF.

            And whats nuts is it will all be computer driven based on models that Joe Public cannot even imagine in his dreams as they were written and encoded by some of the smartest PHD math whizzes around.

            So the house has a massive advantage and the odds of surviving the carnage intact for the man on the street are slim to none. That is what I am talking about. This is systemic now though. But make no mistake, the crackerjacks intend to win and win big once this bubble blows and the ill informed are going to be meat for the grinder.

            Not that it has not always been that way….but now they have the Terminator Borgs running the Algos and their precision is deadly accurate and unbeatable. Point in case is the hedge fund that recently reported multiple years of zero trading losses. What is coming will be a bloodbath for the public.

            bb
            Mar 05, 2015 05:45 AM

            Described well I think Bird.

            Altho I believe what your saying is true, I think people will accept it, might be a little dissent to begin with but in the end, people will get used to it and the next generation will see things as normal.

            Mar 05, 2015 05:02 AM

            I guess my short answer should have been that nothing has changed since time began…but now the crackerjacks have serious technology and supercomputers on their sides. Maybe that’s why this bust will be the most severe in hundreds of years. I am kind of curious what kind of backlash results though. Nobody can predict that.

            Mar 05, 2015 05:13 AM

            Bird swings between extremes. In any society, people may excel, do well, survive or die. Even in worst possible time some people will get rich. If you buy an ounce of gold in Germany in 1919 with no money, you can buy houses in a city block. Just saying.

            bb
            Mar 05, 2015 05:18 AM

            That’s what everyone is guessing at Bird, what will the results/consequences be?

            Mar 05, 2015 05:22 AM

            We always hear about that one single story of a guy who bought a hotel for an ounce of gold but nobody ever talks about the millions who parted with their metals just to buy food and heating fuel.

            Mar 05, 2015 05:34 AM

            Sure, bird. Even with gold you have to use it wisely. But if you don’t have it, what can you do? Buying food is not bad use of it. You cannot store food very long. Enough for today. I have killed some productive time. Bye.

          Mar 05, 2015 05:43 AM

          I’d have to agree with organized theft. Its hard to swallow higher dollar when the books have always showed us that lower rates/negative rates “should” push the currency down of that nation. Credit expansion/money printing “should as well”.

          I guess from your eyes you see the dollar increasing because that scenario has played it’s course and many in here that believe we are in “A great deflation period” see the dollar strengthening in that case.

          With that being said, then deflation would continue with “no” more qe and rates would begin to rise and dollar rise as that is what some of you in here have been saying all along.

          Is this in line with your thinking Bird? That the dollar may correct soon but will continue forever higher?

            CFS
            Mar 05, 2015 05:54 AM

            I have heard talk on the street in Europe that the ECB is considering a minus 3% interest rate.

            Mar 05, 2015 05:55 AM

            Just to add further to this, at what point then would the markets begin to cave? I would have to think not to far in the distant future.. I would suspect then the first interest rate hike would begin the process? or are you of some other thinking?

            This bull in the markets is the longest I have ever witnessed.

            Mar 05, 2015 05:08 AM

            Glenfiddish, it is time to admit I am wrong about the dollar correcting. The entry I was hoping for got squashed as the dollar blasted through the top. Looks like Rick is correct that this is a true dollar bull. He is projecting as high as 1.21 I think he said. I am calling it quits trying to find that dollar / euro reversal I kept thinking was coming.

            Mar 05, 2015 05:10 AM

            Saw it this morning on Zerohedge CFS. That really surprised me but I have my doubts. Sounds like a way to corner more pigeons into the current low rates before the bust if you ask me.

          Mar 05, 2015 05:41 PM

          Organized theft that apparently all the central banks are either playing along or too distracted printing that they can’t see it happening.

            Mar 05, 2015 05:20 PM

            Well, the money printing just keeps the game going longer Cory. But the end of the business cycle is a big fat target to guys who studied economic history and it is not a mystery to them how to capitalize on the opportunity that is coming. Maybe I should not have used the term organized theft. Not like I think there are big planning meetings or anything but rather a handful of bright guys with insights who understand how this all works and end up being on the same side of the game. As far as the CB’s go, I think they honestly believe they are doing the good work and keeping the system afloat. Its the rat bags in banking who are manipulating for the handouts and benefits and understand how to capitalize on the crisis that first erupted during the GFC.

        Mar 05, 2015 05:09 AM

        I think currency war does exist but it is overshadowed by organized theft. Japan just launch the attack on China by cheapening its currency. German still wants Euro because this gives them a currency advantage to export. Eventually the nation with better capability to make things win. The nations which rely on bankers to blow bubbles will blow themselves up.

          Mar 05, 2015 05:12 AM

          Attack?

            Mar 05, 2015 05:16 AM

            Off course. Chinese officials and economists are mad. They criticise Japan in all the possible ways including in the conferences. They do not want to counter attack since they have bigger goals. But it did hurt China.

            Mar 05, 2015 05:24 AM

            What kind of bigger goals? You think they will have a real war one day?

            Mar 05, 2015 05:48 AM

            Chinese leader wants world reserve currency position for RMB, not THE world reserve currency off course. They also stressed on regular basis ready for a war. Most if not all of their military exercises use real ammunition in recent years. Commanders have to ensure someone get killed. They realized they are in a position that many countries want to see them fall. Challenges from south China sea and East China Sea is big. US has been attempting to cut off their oil transportation route. The reason they defended Burma is because of the short cut of oil transportation. They are also planning to dig a channel through Malaysia. The tension in that region can go wild at any moment. Imaging a war between China and japan, which US has been trying to provoke.

            Mar 05, 2015 05:15 PM

            Thanks Lawrence.

      Mar 05, 2015 05:28 PM

      The biggest take away from your comment is that China does not need to report their gold holdings. In the end we don’t believe the numbers that come out of most countries so all we are left to do is speculate. Clearly China has a plan with an end game that is very different than the Western World.

        Mar 05, 2015 05:01 PM

        I think PBOC have its agents holding the gold except the ~1000 tons it claims it have. I forgot the name of the entity. Technically, their number is right. Well, they can make anything they like, just a book keeping value anyway.

    Mar 05, 2015 05:44 AM

    So, my comment yesterday with Chris & Al, made in jest, was simply buy the $ and sell gold, seems to still be working today……..can it be this simple?

    Mar 05, 2015 05:51 AM

    On a more serious note, I read an article this morning with comments by a resource billionaire named Carlo Civelli who made the comment that in a real SHTF event and with everything else collapsing(debt instruments, stocks, derivatives) holders of gold would no way be allowed to keep their profits. Somehow or other, TPTB would end up with the benefit instead of the holder of PMs. When one thinks about it, it may not be too far fetched to think about. This brings up the question, is there anything the small investor can do to protect one’s future? Perhaps not! Comments.

      Mar 05, 2015 05:13 AM

      Silverdollar, I hold gold and silver but I don’t think it will help me out a whole lot if we enter some sort of Mad Max situation. I’ve said it a few times on this site: better to learn some skills…that is how you will protect your future.

        Mar 05, 2015 05:28 AM

        The average citizen is not going to trade their money for gold and silver. Let’s be honest with ourselves. And I’ve seen this first hand: I have two friends in Greece who own pawnshops and they both tell me the same thing: the average Greek comes in with his gold jewelry/coins and sells them for cash. On street level cash will always be king. You can’t pay your rent, bills, grocery with precious metals. Not a lot of people are going to accept that as a form of payment.

          Mar 05, 2015 05:37 AM

          Chris, soon they will implement a virtual currency, I think this will happen when our society defaults on it’s debt. There will be no cash either and they will have total control of what you can and can’t do because every transaction will be monitored and your bills will be paid first.

          Mar 05, 2015 05:48 AM

          See that’s what I was talking about in a post months back, Chris. Here is Africa it is seen as an act of desperation to sell your precious metals, coins or jewelry. The buyers don’t think you are wealthy because you have any gold…they think you are broke BECAUSE you are selling. And so the bids get pushed down low like its an estate auction. I am talking discounts of 50% offered sellers and it will be the same every shop the seller went to. It is how all the gold was drained out of Zimbabwe during their hyperinflation. Desperate people were selling to get better currencies like dollars and euro just to buy food. Sometimes the gold bugs make me insane with their rhetoric about metals when they have no idea how the real world functions when the chips are down.

          Mar 05, 2015 05:50 AM

          Chris is right, the average citizen is not going to trade their money for gold and silver. But this is why the opportunity is so great. The wealth transfer is going to be staggeringly massive.
          There will be no Mad Max scenario. To believe such silly propaganda is to believe that government is necessary (and most do). The little (huge) secret that neither the left nor the right want you to know is that people are generally good AND extremely resilient.

          If the government did completely collapse, places like NYC and Chicago would probably see their crime rate fall since their prohibitive gun laws would be gone. An armed society is a polite one.

            Mar 05, 2015 05:56 AM

            http://www.caseyresearch.com/articles/i-owe-my-soul-why-negative-interest-rates-are-only-the-first-step Matthew, this link is from Casey Research about electronic currency, I know you know but I think it is time some of us were made aware of what is really coming in the future when society has to reset. DT

            Mar 05, 2015 05:18 AM

            Thanks DT, I hadn’t come across that article. With credit card use exploding over the last 3 or 4 decades, society is already conditioned to accept a cashless system. Physical cash makes up such a small part of the money supply that there is already the need for limiting one’s ability to get it in any significant quantity (fees, reporting, outright limits as in 2008, etc.).
            I have long believed that the real reason for FDR breaking his campaign promise immediately after getting elected was due to a similar situation. Though it wasn’t even 20 years old at the time, I think the Fed had created far more paper currency than it had gold to back it with. Its clandestine inflation led to the roaring ’20s and the ’29 crash. In the aftermath, people began to do what they always do and started redeeming their paper for gold AND removing it from the banks. Had the process not been stopped, the fraud would have been exposed as the gold would’ve been gone way before all the paper certificates were redeemed (even accounting for the fact that the Fed was only required to have enough gold to back 40% of its notes).

            Mar 05, 2015 05:35 AM

            Mathew, that is an interesting point you made about FDR and The Fed, one I hadn’t considered but now it all seems so logical.

            Mar 05, 2015 05:54 PM

            I agree, Matthew

        bb
        Mar 05, 2015 05:28 AM

        I agree with you Chris, I kinda think that owning metal is a good thing, but the expression “nothing in excess” comes to mind.
        Once a person has what they figure they need, there are other things to consider.

        The other day David Morgan (guessing) said he figured 200 ones of silver should do the trick of getting a person thru a shtf scenario.
        Its possible he is right, he is the “guru” after all.

          Mar 05, 2015 05:45 AM

          I just think it’s wise to hold some cash as well. I read comments on gold sites where people say they’ve taken out their life savings and bought gold with it. In my opinion, that’s crazy. A lot of people I have been hurt using that strategy. Will it pay off? Maybe, maybe not. Time will tell. Like you said, nothing in excess.

            bb
            Mar 05, 2015 05:06 AM

            Yup, cash is a good thing. People that “plop” really don’t understand much, cant blame them, 5-10% of INVESTABLE income monthly until your desired amount is achieved.
            Some people figure buy all your life and leave it to grandkids, I don’t know, but “plopping” can be costly.

            Absolutly you want cash, at home and in multiple banking institutions, depending on how many millions and billions you have of course.
            For a “working man”, maybe an account with a big bank and one with a credit union would do.

            Sry Brian no link, but it was an interview not an article, Im guessing but I think I got it from Ed Steer, couldn’t swear to it tho.

          Mar 05, 2015 05:47 AM

          “200 ounces of silver should be sufficient for SHTF scenario”

          Do you have a link to this article?

        Mar 05, 2015 05:47 PM

        Agreed chris. Mad Max time is about survival not wealth.

      Mar 05, 2015 05:19 AM

      In China we have a phrase called “In prosperous time you need antique and in chaotic time you need gold”. This has been said for thousand years. I think a lot of stories prove it true. If Al’s grand parents did not have gold to bribe officials, they could not leave warring China. Most Vietnamese boat people used gold to save themselves by buying their way out of the country. In Venezuela, people had to collect gold out of their streams to survive. This is true also in other places. Unless you are willing to rob other people and risk your lives, you cannot survive when currency collapse.

        Mar 05, 2015 05:20 AM

        盛世古董乱世金

          Mar 05, 2015 05:21 AM

          That’s what I was thinking… 😮

        Mar 05, 2015 05:06 AM

        Sorry should be Zimbabwe instead of Venezuela

      Mar 05, 2015 05:47 PM

      I see what you are saying Silverdollar. If we do get the point of total collapse than the only way PMs will help someone is after the washout and we start to rebuild. In time of complete chaos those with power are the ones with numbers. Best to hide all the PMs if we are in a time like that and build alliances… Just my opinion however. I sure hope we never get to that point.

    Mar 05, 2015 05:23 AM

    Dollar To Da Moon! Who couldn’t be bullish it? Seriously.

      Mar 05, 2015 05:48 AM

      UUP is up 5.7% year to date; GDX is up 11.7%. UUP was up as much as 5.9% this year while GDX was up as much as 28%+.

      Mar 05, 2015 05:51 AM

      Haha, thanks for the laugh (;-)

      I like silver over gold because of the practical uses it would have in a SHTF scenario. Water antiseptic, antibiotic, solar, electrical and reflective values just as a sample of its’ uses

        bb
        Mar 05, 2015 05:12 AM

        Dan, other than water purification, everything else you mention requires an intact and functioning society to implement.

        Unless you have your own science lab and manufacturing capabilities I guess.

        Using silver for bullets might end up being more practical in a shtf scenario.

          Mar 05, 2015 05:15 AM

          The antibiotic can be made with water and a battery and silver rods. It can also be flattened to provide a reflective sheet for heating water. Just examples. Can also throw the coins at yer enemies…

            bb
            Mar 05, 2015 05:53 AM

            I didn’t know that about antibiotics, I guess there are ways to use it I am not aware of.
            Geez, first time Ive noticed that. lol

            Mar 05, 2015 05:05 PM

            You can also fashion it into a hat and then ‘they’ will not be able to read your thoughts 🙂

          Mar 05, 2015 05:55 AM

          Silver bullets for the Werewolves.

    Mar 05, 2015 05:10 AM

    Ahhh yes, gold doing what it does best. Down !

      Mar 05, 2015 05:21 AM

      Yet, it’s still outperforming the dollar by 2.2% YTD. What the buck? 🙂

      Mar 05, 2015 05:54 AM

      I guess you are not aware that lift and smash gold is the best way to cover silver shorts without owning silver

        Mar 05, 2015 05:02 AM

        My guess is that as long as silver does not go under 16, they will lift gold again. Doing this many times, they can cover a lot of silver shorts they added in the last few month. I they do get silver under the key level, they will drive it down until it stops.

      Mar 05, 2015 05:50 PM

      I would gold has dominated the up then down and overall sideways moves for the past year… Too bad no one sees a change to this coming.

    Mar 05, 2015 05:17 AM

    Very good discussion. Many good points to ponder. Thanks Al and all contributors.

    Mar 05, 2015 05:59 AM
    Mar 05, 2015 05:48 PM

    Gold Canyon article published yesterday Gold buyouts heat up; will Gold Canyon be next?

    One You may not be actively shopping for shoes, but if you stumble on a stylish pair discounted 90% – you’re probably going to buy them.

    This bargain-hunting reflex has hit the gold sector causing a flurry of acquisitions including Goldcorp’s (NYSE: GG) $526 million acquisition of Probe Mines, Agnico Eagles’ (NYSE: AEM) $205 million acquisition of Cayden Resources, and Timmins Gold (TSX: TMM) $140 million purchase of Newstrike Capital.

    Newmont Mines’ (NYSE: NEM) CEO Gary Goldberg also recently stated that “We’re always looking to improve our portfolio,” and “It doesn’t hurt to just look around.”

    Gold Canyon’s (TSX.V: GCU) Ontario, Canada Springpole project may be the next shiny set of shoes about to be scooped up.

    “Gold Canyon offers one of the best opportunities to leverage the price of gold,” wrote Bob Moriarty in a December, 2014 publication note, “at $0.10 a share, you are paying about $2.60 an ounce for gold in a safe jurisdiction. That’s pretty hard to beat.” [ed. note: GCU share price has risen 70% since then].

    http://www.mining.com/web/gold-buyouts-heat-will-gold-canyon-next/

    Mar 05, 2015 05:45 PM

    I am the only one who thinks that there is not a lot happening in the markets this week – as if the markets are treading water waiting for something to drive them higher or lower?

      Mar 05, 2015 05:52 PM

      It does feel as though there has been a lack of fireworks in the markets recently. The Fed likes it and the traders I’m sure are fine with it but it can not last for a lot longer… Something has to give even if it is just a short term bounce or fall.

    Mar 05, 2015 05:41 PM

    Price comes back right on time. Some funds got to arbitrage this. This is a BS

    Mar 05, 2015 05:57 PM

    Does Rob McEwen really not wonder why gold isn’t at $5,000 already?

    Dear Friend of GATA and Gold:

    If there’s a tougher and shrewder entrepreneur and executive in the gold mining business than Rob McEwen, founder of Goldcorp and now CEO of McEwen Mining, GATA doesn’t know of one. But McEwen’s remarks this week at the PDAC conference in Toronto, at least as conveyed by the National Post, suggest that he’s not tough and shrewd enough — that in the crucial respect he’s just like the rest of management in the gold-mining industry, unable to put 2 and 2 together even as the equation is flashing in neon lights right in front of him.

    According to the National Post, whose report is appended in part below, McEwen is maintaining a prediction of a gold price of US$5,000 despite the monetary metal’s poor performance in recent years.

    http://www.gata.org/node/15159

    Mar 05, 2015 05:16 PM

    Robs a good business man but like everyone else…He can’t predict the price of gold. He never forcasted the wipe-out how is he going to foresee a massive move….?
    There isn’t one coming…Ill follow the guys that got out in a timely fashion…They say NO…The USD is going higher….

    Mar 06, 2015 06:24 AM

    I agree Bill , but the same logic holds for the U.S.D. Everyone and his brother is on the USD’s bandwagon predicting it will go through the roof. This type of bullish hype/hysteria cannot last indefinitely; it will be broken at some time in the future. Not sure when but it will. When it does, a lot of dollar bulls will have their behinds handed to them just like gold bulls did when the price turned at $1900.

      Mar 06, 2015 06:32 AM

      Bullmarket a last a long time and can stay wildly bullish. People were dollar bears for years and it was used toilet paper as they called it. Just listen to Bob Moriarty if you want to go broke. The market was going to crash along with the dollar and gold was going to fly. {November call) I laughed like hell. He’s just a high risk gambler like most. Very few actually predict what going to happen consistantly. USA will surprise to the up side.

      Mar 06, 2015 06:38 AM

      US trade deficit is getting worse by the day. It has no surplus month so decades.

      http://www.zerohedge.com/news/2015-03-06/us-trade-deficit-worse-expected-auto-exports-tumble

    Mar 06, 2015 06:36 AM

    ..and here’s the gold wash….!

    Mar 06, 2015 06:14 AM

    .glad i am short in DUST

      Mar 06, 2015 06:53 AM

      Sweet! Sometimes I forget not everyone here is a bull.

    Mar 06, 2015 06:19 AM

    It’s great that virtually everyone here is a bull. We are in a bear market. Lol
    I dumped my KGI Ans GCU for a $15,000 profit 2 days ago. It’s a crap shoot out there