With no growth in the quantity of U.S. dollars since February, the dollar is becoming rarer relative to other currencies. Ultimately, unless corrected, the value of the U.S. dollar should rise in the short-term. Such an event might come as a surprise to those plunging into Gold and Silver on the back of margin debt.Unless, of course, there is an international panic caused by dollars already overseas.
ViaLilaRajiva
#1 - Anybody who uses the phrase "ultimately" when referencing the short term is being intentionally vague.
ReplyDelete#2 - Agreed on the margin warning. Real gold savvy advisors have been saying the same thing. Margin can bite hard in these times.
"Unless, of course, there is an international panic caused by dollars already overseas."
ReplyDeleteI agree with your comment because, as I've consistently commented in response to your blogs on the static supply of money, demand for dollars matters as much as supply.