Gold Chart Walk 2012
by Morris Hubbartt
Dollar Key Resistance Chart
government requires unlimited funding. The unfunded liabilities
of the USA are staggering. Over the next 20-25 years there is probably
a gigantic $75 trillion unfunded liability problem for the US government.
Think of the move in gold against the dollar with a debt of $15
trillion. Can you imagine the action in gold with a debt five
times the current size?
States could be headed towards decades of dollar devaluation. With
all of the problems in Europe, why isnt the euro hitting new
lows? Why cant the dollar mount a real rally, instead of this
tiny bit of strength?
is that the dollar isnt really very strong at all. If America
goes into a crisis like youve just seen in Europe, the fall
in the dollar could dwarf the euros fall, because America
is the largest debtor nation in the history of the world.
of all fiat currencies is to be competitive, with each currency
group looking for an advantage in trade, and more importantly, an
advantage in debt relief for the governments that issue these
currencies. Fiat currencies are designed to be depreciated
over time. Buy Gold in this time of gold price weakness, because
your opportunity wont last forever.
you to take a look at the despised euro. The euro is not breaking
new lows, and the dollar is not exploding to record highs. The commercials
group is now heavily buying the euro. Could this mean the euro is
actually headed higher?
The euro often
moves in line with gold and I think this is an opportunity to build
your holdings of gold and silver, rather than betting one fiat currency
against another. I am doing it now in most of the precious metals
Twin Tables Chart
are very important to determine where markets might be headed into
the future. Strong sentiment indicators like commercial buying in
gold are currently telling a very bullish story.
commercial buying in gold acts more as general guide than as a laser
pointer. Commercial buying doesnt mean that the trend is about
to reverse, and large drawdowns can greet investors who buy as the
commercials buy. The key point to remember when studying commercial
buying is that assets bought when commercial traders buy them can
usually be sold at a very good profit, but you need to have patience.
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© 2012 321 Gold