Yes, Chris, I tend to share your view of the US$. It seems to be working out exactly as it should and the fact that so many people are so sure that it should collapse, gives me support as well. Mainly since their logic lacks any real foundation except recent history when the US$ was driven down for 4 years.
I think that gold will probably get a bit cheaper, but it is not behaving like a commodity right now, but more like money. Compared to the CRB, gold has done very well. And, this is close to it’s behavior from 1929 to 1932. So, from a relative strength view, it’s hanging in there fairly well. Technically, I think it’s supported in the mid $600’s, which we may see here soon. But given the markets instability, it may not stay there too long if it does indeed touch it again. I hold the view that this is not a run-of-the-mill recession. And gold was beaten down in those scenarios types…as early 80’s and 90’s it did decline. But nonetheless, I think the US$ is the smart play here for quite a while. I have a little physical gold, but that’s mostly my personal paranoia. Not logic.
If anyone were to seek my advice for investments in the next year, I would tell them get long US$ and hold on to them!! Bargains await those with cash and patience in the coming years.
