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Strategies & Market Trends : The coming US dollar crisis

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From: Valuepro6/23/2019 12:22:03 PM
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I have not posted here in years, but I think this forum is about to experience a revival. My best evidence for that is in the fact that the other day the prices for gold and silver bullion surged, while at the same time the prices for all platinum group metals (PGMs) fell.

Why would I think this a meaningful signal in a generally rising market for precious metals? Because gold and silver are more strongly associated with use as monetary metals, while PGMs are more related to industrial applications, there being an inverse relationship between the value of the dollar and prices for monetary metals.

Thursday's price anomaly, of course, was not singular evidence for revaluation of the dollar as a trend, but it did hit me over the head as robust evidence for this. By the way, I think all fiat money is experiencing a revaluation against gold and silver prices, and the dollar is probably most likely to be least damaged by this. ...all in my humble opinion, of course.

Having said all of this, I think tomorrow's market for gold and silver should be off, after too many days of being up. After all, three days in the same direction is rare, four days rarer still. Also, conflict with Iran seems less likely than it did on Friday.

Cheers,
VP in AZ

P.S. Note also that central banks are universally either holding or buying gold (with the exception of Venezuela), particularly Russia and China. In other words, there is no more dumping of gold and silver in favor of buying the dollar and other forms of fiat money.
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