The dollar has reached all-time lows
against the euro
Posted on 10/18/2007 6:07:42 PM PDT by bruinbirdman
The dollar has plummeted to all-time lows against both the euro and a basket of global currencies amid growing fears of a disorderly rout as the US property slump spreads to the broader economy.
The greenback dived after the US 'Philly' business index dropped 10.9 to 6.8 in October, with a shock fall in new orders and inventory, raising the chances of further rate cuts by the Federal Reserve this month.
The dollar has reached all-time lows
against the euro
David Page of Investec Securities also noted that sales of toys and games were high due to fears that stocks would not meet Christmas demand following Mattel's toy recalls. Shoppers seem to have shrugged off any impact of the recent market turmoil, prompting economists to speculate that the Bank of England may wait until next year to cut interest rates.
Other data lent support to this view. Bank of England figures showed that growth in the country's broad money supply, which can fuel inflation, cooled in September but stayed high at 12.8pc.
Growth in total lending by banks and building societies, known as M4 lending, appeared entirely unaffected by the credit crisis, rising from 12.3pc to 13.1pc. Vicky Redwood of Capital Economics said: "With inflationary pressures still strong and retail sales figures supporting evidence that the economy grew more strongly in the third quarter than the Monetary Policy Committee expected, interest rates look likely to stay on hold until next year."
The housing market, however, showed signs of cooling. Data from the Council of Mortgage Lenders revealed a stark 12pc decline in mortgage lending over the month, around twice the average fall in August.
Separately, the ONS released data giving a gloomy picture of the state of the public finances, in a fresh blow for new Chancellor Alistair Darling.
Public sector net borrowing, the Government's preferred measure of the public finances, rose to £7.4bn last month, the highest September borrowing on record and above expectations of £6bn.
Howard Archer of Global Insight said: "With slowing growth, a softening housing market and substantially lower City bonuses all likely to weigh down on tax revenues, the prospects for the public finances look worrying."
Amen! (from the balcony, of course)
Japan runs a merchandise trade surplus with China.
I figure I'll be counting on an exhange rate of $1.47 to the Euro, with 3% on top of each purchase going to my bank.
Take Barrick Gold sym: ABX. They will employ hedging strategies. Also, like any company they are subject to costs for labor, machinery, etc.
We told you that Y2K was going to be a bitch.
abx is very interesting. i don’t buy directly but via mutual f ..... so far
abx is very sexy.... old man bush has been involved with them ... they are connected players ... IMHO
fun= gdx (gold mine ETF)
gld= ETF that just buys bullion
google it and follow in MSN money and set up a quote list
Get an MSN mail account instead of hot mail account
https://accountservices.passport.net/reg.srf?ns=msn.com&sl=1&lc=1033
Do you use Globetrotter luggage — by Samsonite
Free traders told me not to worry. A worthless dollar is awesome for some reason or another.
Gold mine stocks do not move lock step with gold these days.
Same was true in the 1980s when gold was a hot item
When gold is hot mining stocks even hotter. Their swing is greater than the gold price
Gold mine stocks are more "speculative" that gold most of the time. More volatile
DOWNSIDE also true these days. Mines will dip more than gold when gold dips. Percentage wise of course
F'ing retards same as their guru Walter Williams
This defies common sense
REAL SCAM is lots of free trader types who say trade deficits don't matter place side bets (they hedge) with gold and oil, foreign currency and foreign stock market ETF. These lying SOBs hedge against the downside of policies they advocate
Interesting.
Canada and Brazil
Brazil ETF = ewz
http://www.google.com/search?sourceid=navclient&ie=UTF-8&rlz=1T4GGIH_enUS242US242&q=ewz
true
Have you ever heard GW say anything about our unsustainable trade deficit? His dad was a super “free trader” too. Daddy Bush placed heavy bets on Barrick gold (abx) and dittos for Mulroney the (former) Canadian prime minister
kitco.com you can buy bullion at any given moments price. They’ll hang on to it for you, trade it for you or just send it to you. One may always set up their own household smelter ;-}
I’m very familiar with the ETFs having traded them with frequency. They fit in well with my trading style which isn’t buy and hold. Yetsrday I bought QID, held it overnight and sold 1/2 just minutes ago. Buy and hold went out in the nineties!
He shoots he scores. Well done! We should talk sometime. In FL aren’t you?
Agree. Brazil is a superstar and is only in the midstages.
What is the byproduct of gold. Is it earnings, dividends, interest? No?
Well, then for the same reason as buying gold, you might as well by used bricks, gravel, copper, cords of wood, rubber bands, or whatever.
The only allure of gold, is the mystique behind it. Like any commodity, it only appreciates via inflation, supply, demand, or currency loss of the nation which you live in.
With a rental property you get income, stocks you get ownership and dividends, bonds you get interest. But with gold you just get an object...
Granted, you could buy a goldmining company, that makes its business in selling objects, no different than buying a gravel company.
Gold mining stocks are down today. They went down along with the DJA
US gold price finished same as it finished yesterday
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