As per my previous post,the gold action at $1000 as it bounced back and forth was unprecedented. What is causing this resistance to the typical pounding back down by the gold shorts ? Oil, or make that oil and the US dollar.
A report from the link below has some startling if not earth shaking news that Russia,China, Japan,France and the Arabs are in plans to shun the US dollar for trading in oil dollars. Is this article true ? Since it came from Peter Grandich's site I will believe there is truth to it for the time being. Will the US protest this move if it happens ? You bet your bippy they will. This is one of the most crucial events that could happen to the US$ as it is has been on the ropes for awhile now but always managed to make it another round.
What could change this direction ? Raising interest rates drastically as in a one point increment which the FED stated a week ago was a possibility. The US has been "pleading" with China to let the Yuan rise and they say "screw you". I see no other alternative for the US,maybe not right away but in a month or so if this continues. Money would flood back into the US dollar and gold would tank along with oil prices. Or would it ? Gold is held against inflation as well so there is a serious support for gold right now like no other time I have experienced,the action proves it.
Gold is currently kissing $1040, a record high,silver is up over $17 but not close to the old $20 record and oil is above $71. Something is cooking here folks. And I will soon have my gold/silver pick for you,just waiting on some confirmation of my DD process. The junior explorers could get very hot here if you are in the right place,as we now know it is the right time.
As far as the DOW goes, as of 9 AM the DOW is up the second day in a row with earnings season kicking off tomorrow with Alcoa being the first big boy to report. So hang on to your hats,this may be quite the ride.
Important update: I just received a report on this from Custom House and they stated the Arabs are denying this but no mention on the others.
"Just as quickly as the report hit the wires, a speedy denial from Saudi Arabia followed, with the central bank governor stating that the rumours are completely false. While the quick rebuff from the Saudis may in fact indicate that they are not looking to diversify away from USD, the same cannot be said for China when speaking about the destiny of the Greenback’s reserve status. From China having taking major stakes in energy and commodities, and from Chinese officials having stated their displeasure with the USD, it’s clear to see that China has already taken steps to branch out from under the Greenback’s wing. While the dollar’s fall from grace surrounding its future as “the” reserve currency has been well documented, the simple fact that there are currently no alternatives available suggests that the decoupling from the USD will be a very slow and arduous process."
http://www.independent.co.uk/news/business/news/the-demise-of-the-dollar-1798175.html
No comments:
Post a Comment