Posted on 10/26/2009 1:00:00 PM PDT by h20skier66
A fierce war of words has erupted in recent weeks between the two major camps in monetary circles. The first camp - the gold bulls/dollar bears - have been loudly voicing their twin belief that the gold price is poised to skyrocket while the dollar price is perched for a collapse. The other side - the gold bears/dollar bulls - are making the counter claim the gold price is setting up for a crash.
There is another train of thought espoused by some that a slow, steady decline of the dollar's exchange value, rather than being a catastrophic event, is actually good for the U.S. David Jennett, editor of the Investment Letter, is an advocate of this theory. He writes, "Far from being a sign that things are heading for a disastrous crash, the weaker dollar is a sign that American manufacturers will once again be given a fair chance to prove to the world that they are a low cost, high quality producer."
Even within the gold community there are some who don't buy into the "dollar crash now!" scenario. In an interview I conducted recently with James Hesketh, President and CEO of Atna Resources, a Colorado-based gold production and exploration company, Hesketh said, "The gold price is pushing the limits to new highs on the back of a weakening U.S. dollar.
(Excerpt) Read more at commoditynewscenter.com ...
Gold may or may not skyrocket. But it will not fall much or fast until there is a spike IMO.
War? The value of one is the result of the value of the other.
Gold, IMO, is over-priced. Who in their right mind would invest in gold at $1000 per oz?
A crazy person in their right mind?
Any time I hear all the TV touts shouting that X is “at an all-time high!!” I start to think “Hmmm, maybe it’s time to short some X.”
Who in their right mind would invest in gold at $1000 per oz?
Of course, your use of the term “invest” is deceptive, because many gold buyers aren’t “investing”, they’re “insuring” or “hedging”.
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