rougedolphin - Dollar collapse - Gold/Commodities
Rouge,
You posted the chart that had base metals consensus pricing the other day. I remember nickel was forecast down 38% or so. Now you post this Chapman piece:
"First 80 will be broken, then 78.33 and then a say 6-month sideways motion in the 70 to 75 area. Then the break to 55 and another sideways movement over a six-month period and either a bottom would be set or there would be another move down to 40. How it will work out we do not know until we get there. When we get where we are gold and silver will be considerably high. It will be interesting to see where interest rates will be. While this is going on they could be lowered somewhat, but our guess is they will try to hold them at this level, although they may have to be increased to break the fall in the dollar to keep it from becoming a rout. It will be a day-to-day event. Do not forget, at least for now, they want to keep the dollar as the world’s reserve currency.
While all this is transpiring commodity prices and prices of gold and silver will rise considerably, the move down for the dollar should take 1-1/2 to 2 years once it begins."
How can both be right? If nickel goes down 38% and the dollar another 25% that means reletive nickel prices in USD will be around $5-6.00/lb.
How can the dollar collapse take base metal prices with it?
Kipp
AI
