I'm not sure it's really that easy.Today, 09:20 PM
Re: Gold Price - Where is it heading?
I have been in the Gold correction camp.Kennas: You really do like the gold thread Bean! So, what's your call? $US tank and Gold pushing on to all time highs?
Because if the US$ tanks the US market will follow because world market will correct as their currencies rise. including Australia
But I have been showing US Gold indexes have been following the markets.
SO I think the market will tank including Gold.
Because the FED can try and save the market down the track by easing interest rates and try a recovery that way, as the US will be heading into a recession.
But if the US$ tanks it has no floor on the charts so where do they find support for it.
Also financial turmoil and they will still have the Markets dropping caused by world markets dropping.
But if US$ market drops initial supportive will flee to the US$ causing it to rise.
Sentiment on the US$ is so negative what an excellent time for it to rally
You will know this week if I am right or wrong.
And either way the Australian market is going to correct..
Either with a rising Aussie $
or falling markets
And there is your recipe.
But that does not mean the scenario is not possible.
The dawning reality is that the US market is no longer the driving force it was.
The piper is playing to an increasingly Asian tune, with sheet music printed in Europe.
Any view that the USD can re-gather itself and return the US to its glory days must be seriously questioned.
There are few redeeming features of the US economy, and while it remains at war with terror, its debt levels will continue to blow out.
Right now the third world is being plundered for its natural resources (along with a few other nations - like Oz) and being paid a premium that several years ago would have destined them to remain banana republics.
But as we know, bananas can have high net worth at the right time, and NOW is the right time.
There is a massive shift of money from the west to the east, and from the east to the third world; As Asia splurges on purchases of commodities wherever it will be allowed.
Then there is this overriding rise in global industrial production. We should never lose sight of "industrial production" as it truly is the engine room of economic growth.
The engine room is running hot, and equally hot are the "feeders" of the engine - raw materials and energy.
In taking a global view one can more easily see the big picture.
It is one that has downsized the US.
And supersized Asia.
Yet it has not done it overnight.
While the skeptics still bay for China's economy to tank, an emergent Juggernaut rolls relentlessly onwards and upwards.
It's on the journey of a lifetime, and for those that understand what "once in a generation" means, a good deal of money can be invested for the long term.
Picking short term plays is a game for seasoned professionals.
And even they are prone to injury!