Dollar Dropping

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Also, can you please tell me what factors would lead to a decline in the price of precious metals? Since they are dollar-denominated, it would seem to me that a fall in the price of metals would require a corresponding rise in the dollar’s value.

Oil is dollar-denominated yet it fell dramatically last year without a corresponding dramatic rise in the dollar (the dollar rose a bit but not nearly as much as oil fell).

[partypup]

[quote=CONCHO]Also, can you please tell me what factors would lead to a decline in the price of precious metals? Since they are dollar-denominated, it would seem to me that a fall in the price of metals would require a corresponding rise in the dollar’s value.

Oil is dollar-denominated yet it fell dramatically last year without a corresponding dramatic rise in the dollar (the dollar rose a bit but not nearly as much as oil fell).[/quote]

Concho, I don’t think you can compare gold and oil when discussing a dollar collapse. In fact, gold and silver have now solidly de-coupled from oil. Gold and silver are recognized media of exchange and are considered money. They therefore move inversely to the dollar. Gold is often spoken of as the anti-dollar. The same is not necessarily true of oil, which fell prey to what we all know now was primarily a sepculator-driven rally last summer. Any 24-mos oil chart will demonstrate this. Gold, on the other hand, has been on a steady rise since the late 80s. Apples and oranges, my friends.

[partypup]

[quote=CONCHO]Also, can you please tell me what factors would lead to a decline in the price of precious metals? Since they are dollar-denominated, it would seem to me that a fall in the price of metals would require a corresponding rise in the dollar’s value.

Oil is dollar-denominated yet it fell dramatically last year without a corresponding dramatic rise in the dollar (the dollar rose a bit but not nearly as much as oil fell).[/quote]

Concho, I don’t think you can compare gold and oil when discussing a dollar collapse. In fact, gold and silver have now solidly de-coupled from oil. Gold and silver are recognized media of exchange and are considered money. They therefore move inversely to the dollar. Gold is often spoken of as the anti-dollar. The same is not necessarily true of oil, which fell prey to what we all know now was primarily a sepculator-driven rally last summer. Any 24-mos oil chart will demonstrate this. Gold, on the other hand, has been on a steady rise since the late 80s. Apples and oranges, my friends.

[partypup]

[quote=CONCHO]Also, can you please tell me what factors would lead to a decline in the price of precious metals? Since they are dollar-denominated, it would seem to me that a fall in the price of metals would require a corresponding rise in the dollar’s value.

Oil is dollar-denominated yet it fell dramatically last year without a corresponding dramatic rise in the dollar (the dollar rose a bit but not nearly as much as oil fell).[/quote]

Concho, I don’t think you can compare gold and oil when discussing a dollar collapse. In fact, gold and silver have now solidly de-coupled from oil. Gold and silver are recognized media of exchange and are considered money. They therefore move inversely to the dollar. Gold is often spoken of as the anti-dollar. The same is not necessarily true of oil, which fell prey to what we all know now was primarily a sepculator-driven rally last summer. Any 24-mos oil chart will demonstrate this. Gold, on the other hand, has been on a steady rise since the late 80s. Apples and oranges, my friends.

[partypup]

[quote=CONCHO]Also, can you please tell me what factors would lead to a decline in the price of precious metals? Since they are dollar-denominated, it would seem to me that a fall in the price of metals would require a corresponding rise in the dollar’s value.

Oil is dollar-denominated yet it fell dramatically last year without a corresponding dramatic rise in the dollar (the dollar rose a bit but not nearly as much as oil fell).[/quote]

Concho, I don’t think you can compare gold and oil when discussing a dollar collapse. In fact, gold and silver have now solidly de-coupled from oil. Gold and silver are recognized media of exchange and are considered money. They therefore move inversely to the dollar. Gold is often spoken of as the anti-dollar. The same is not necessarily true of oil, which fell prey to what we all know now was primarily a sepculator-driven rally last summer. Any 24-mos oil chart will demonstrate this. Gold, on the other hand, has been on a steady rise since the late 80s. Apples and oranges, my friends.

[partypup]

[quote=CONCHO]Also, can you please tell me what factors would lead to a decline in the price of precious metals? Since they are dollar-denominated, it would seem to me that a fall in the price of metals would require a corresponding rise in the dollar’s value.

Oil is dollar-denominated yet it fell dramatically last year without a corresponding dramatic rise in the dollar (the dollar rose a bit but not nearly as much as oil fell).[/quote]

Concho, I don’t think you can compare gold and oil when discussing a dollar collapse. In fact, gold and silver have now solidly de-coupled from oil. Gold and silver are recognized media of exchange and are considered money. They therefore move inversely to the dollar. Gold is often spoken of as the anti-dollar. The same is not necessarily true of oil, which fell prey to what we all know now was primarily a sepculator-driven rally last summer. Any 24-mos oil chart will demonstrate this. Gold, on the other hand, has been on a steady rise since the late 80s. Apples and oranges, my friends.

[Arraya]

Oil production stalled at about 86 million barrels a day back in late 2004. From 2004-2008 consumption rose in the east by about 9 million barrels a day. So who was getting shorted oil if we were not producing anymore? In early 2008 food riots broke out all over the third world because oil IS food. Global growth started killing off the 3rd world as the richer nations grew there economies and need more oil.

Peak Oil IS the fiat killer because our monetary needs energy growth to continue and gold knows this. Fiat is a grow or die system and their is NO MORE growth. 1 year or 10 years it’s over.

[Arraya]

Oil production stalled at about 86 million barrels a day back in late 2004. From 2004-2008 consumption rose in the east by about 9 million barrels a day. So who was getting shorted oil if we were not producing anymore? In early 2008 food riots broke out all over the third world because oil IS food. Global growth started killing off the 3rd world as the richer nations grew there economies and need more oil.

Peak Oil IS the fiat killer because our monetary needs energy growth to continue and gold knows this. Fiat is a grow or die system and their is NO MORE growth. 1 year or 10 years it’s over.

[Arraya]

Oil production stalled at about 86 million barrels a day back in late 2004. From 2004-2008 consumption rose in the east by about 9 million barrels a day. So who was getting shorted oil if we were not producing anymore? In early 2008 food riots broke out all over the third world because oil IS food. Global growth started killing off the 3rd world as the richer nations grew there economies and need more oil.

Peak Oil IS the fiat killer because our monetary needs energy growth to continue and gold knows this. Fiat is a grow or die system and their is NO MORE growth. 1 year or 10 years it’s over.

[Arraya]

Oil production stalled at about 86 million barrels a day back in late 2004. From 2004-2008 consumption rose in the east by about 9 million barrels a day. So who was getting shorted oil if we were not producing anymore? In early 2008 food riots broke out all over the third world because oil IS food. Global growth started killing off the 3rd world as the richer nations grew there economies and need more oil.

Peak Oil IS the fiat killer because our monetary needs energy growth to continue and gold knows this. Fiat is a grow or die system and their is NO MORE growth. 1 year or 10 years it’s over.

[Arraya]

Oil production stalled at about 86 million barrels a day back in late 2004. From 2004-2008 consumption rose in the east by about 9 million barrels a day. So who was getting shorted oil if we were not producing anymore? In early 2008 food riots broke out all over the third world because oil IS food. Global growth started killing off the 3rd world as the richer nations grew there economies and need more oil.

Peak Oil IS the fiat killer because our monetary needs energy growth to continue and gold knows this. Fiat is a grow or die system and their is NO MORE growth. 1 year or 10 years it’s over.

[partypup]

[quote=Eugene
Gold should have crashed below $600 last winter, in proportion with other metals, but the fact that there’s virtually no industrial demand for the metal, and the fact that the existence of GLD allowed gold bugs to scoop up the excess gold on the market (absorbing 500 tons in 6 months), postponed the inevitable crash.[/quote]

I love it. Gold “should have fallen” last winter. Or rather, you THINK it should have fallen. The Plunge Protection team has clearly lost control of the metals markets now. Their manipulation efforts are seriously unraveling. I always knew this day would come – just wasn’t sure when. Eugene, I bid you good luck with your gold short positions. In about 6-12 mos, you are really going to take it in the shorts 😉 COMEX has sold more paper metal than it can possibly keep track of, and when deliveries are called for en masse that can’t possibly be accommodated – when the numbnuts on CNBC finally realize that the dollar is dying and it ain’t coming back – you will see metals rise to new highs. Frightening highs.

I didn’t think you’d take my bet, BTW. That is telling, IMO. I, on the other hand, was willing to put $300 down via PayPal, and am still willing to do so. We can talk and talk to till the cows come home, but the strength of your conviction (or lack thereof) in a coming gold crash is belied by your unwillingness to put any money on the line with me.

[partypup]

[quote=Eugene
Gold should have crashed below $600 last winter, in proportion with other metals, but the fact that there’s virtually no industrial demand for the metal, and the fact that the existence of GLD allowed gold bugs to scoop up the excess gold on the market (absorbing 500 tons in 6 months), postponed the inevitable crash.[/quote]

I love it. Gold “should have fallen” last winter. Or rather, you THINK it should have fallen. The Plunge Protection team has clearly lost control of the metals markets now. Their manipulation efforts are seriously unraveling. I always knew this day would come – just wasn’t sure when. Eugene, I bid you good luck with your gold short positions. In about 6-12 mos, you are really going to take it in the shorts 😉 COMEX has sold more paper metal than it can possibly keep track of, and when deliveries are called for en masse that can’t possibly be accommodated – when the numbnuts on CNBC finally realize that the dollar is dying and it ain’t coming back – you will see metals rise to new highs. Frightening highs.

I didn’t think you’d take my bet, BTW. That is telling, IMO. I, on the other hand, was willing to put $300 down via PayPal, and am still willing to do so. We can talk and talk to till the cows come home, but the strength of your conviction (or lack thereof) in a coming gold crash is belied by your unwillingness to put any money on the line with me.

[partypup]

[quote=Eugene
Gold should have crashed below $600 last winter, in proportion with other metals, but the fact that there’s virtually no industrial demand for the metal, and the fact that the existence of GLD allowed gold bugs to scoop up the excess gold on the market (absorbing 500 tons in 6 months), postponed the inevitable crash.[/quote]

I love it. Gold “should have fallen” last winter. Or rather, you THINK it should have fallen. The Plunge Protection team has clearly lost control of the metals markets now. Their manipulation efforts are seriously unraveling. I always knew this day would come – just wasn’t sure when. Eugene, I bid you good luck with your gold short positions. In about 6-12 mos, you are really going to take it in the shorts 😉 COMEX has sold more paper metal than it can possibly keep track of, and when deliveries are called for en masse that can’t possibly be accommodated – when the numbnuts on CNBC finally realize that the dollar is dying and it ain’t coming back – you will see metals rise to new highs. Frightening highs.

I didn’t think you’d take my bet, BTW. That is telling, IMO. I, on the other hand, was willing to put $300 down via PayPal, and am still willing to do so. We can talk and talk to till the cows come home, but the strength of your conviction (or lack thereof) in a coming gold crash is belied by your unwillingness to put any money on the line with me.

[partypup]

[quote=Eugene
Gold should have crashed below $600 last winter, in proportion with other metals, but the fact that there’s virtually no industrial demand for the metal, and the fact that the existence of GLD allowed gold bugs to scoop up the excess gold on the market (absorbing 500 tons in 6 months), postponed the inevitable crash.[/quote]

I love it. Gold “should have fallen” last winter. Or rather, you THINK it should have fallen. The Plunge Protection team has clearly lost control of the metals markets now. Their manipulation efforts are seriously unraveling. I always knew this day would come – just wasn’t sure when. Eugene, I bid you good luck with your gold short positions. In about 6-12 mos, you are really going to take it in the shorts 😉 COMEX has sold more paper metal than it can possibly keep track of, and when deliveries are called for en masse that can’t possibly be accommodated – when the numbnuts on CNBC finally realize that the dollar is dying and it ain’t coming back – you will see metals rise to new highs. Frightening highs.

I didn’t think you’d take my bet, BTW. That is telling, IMO. I, on the other hand, was willing to put $300 down via PayPal, and am still willing to do so. We can talk and talk to till the cows come home, but the strength of your conviction (or lack thereof) in a coming gold crash is belied by your unwillingness to put any money on the line with me.

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