VMC Predictions

[littlejohn]

Len, gold can appear a safe haven as investors store sales proceeds from falling asset classes and back and forth between different currencies that are retreating along with other asset classes...

The currencies retreat like dancers against each other as countries keep viaing for a better currency rate of exchange against other currencies to help their own trade prospects...The US didn't support a falling dollar because that is not the best thing for large corporate global competitiveness...

So, just maybe, gold is more connected to currency exchanges than asset valuations...

Or, it is only a laggard in the drop scheme...

If you will review the long term gold charts you will notice $30 to $40 gold per ounce until Opec took control of global oil pricing in the early 70s...Gold bugs read the following rises as a reaction to the US moving off the gold standard...

Is Opec in control of falling oil prices now?...Don't appear to be...

If Opec countries have stored vast amounts of wealth in gold and need more money than oil sales produce to balance budgets what happens?...

Only a thesis of a calamity...Timing is only a guessing game...LJ