The markets are getting very volatile. Check out the performance in the last two days, above, in the dollar, euro and the Dow. A lot of folks with large bank accounts are getting frightened and their money is (foolishly) moving into the dollar for “safety.” The smart, among them, are moving out of stocks and into gold and silver, not into interest bearing dollar investments, a.k.a. Treasuries.
Considering the rapid rise in the dollar, gold is doing exceedingly well. Being denominated in dollars, gold should fall as the dollar rises. The dollar has been moving up for a while now and so has gold. As our friend Bill Murphy points out, the dollar and gold have long since de-coupled. Gold is acting as a global currency on its own and its price is clearly demonstrating that gold is the preferred “currency” of them all.
In today’s daily, there are some very strong warnings from our friends, Andy Hoffman and Bill Holter. They represent a point of view that is solid, based on fundamentals and holding nothing back. I don’t know that I share their imminent concern, though they may be right. If I didn’t think so, I would not have published their views. It’s for you to decide just how serious and how imminent the issues they discuss really are. Worth reading!