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Message: Re: Gold down, US$ up - a contrarian view?

Apr 20, 2012 03:57PM

Regarding the relationship of the US$ to other currencies, I don't know how anyone can really make a long term call. There are just too many variables - every nation has an ever changing approach to money printing, debt managment, politics, along with changes in economic growth. Add to that the risk-on, risk-off mood swings of currency traders. Other than short term technicals, I think it's just pure guesswork.

I'm not even sure it matters all that much. The inverse relationship between US$ and PMs is overrated. It seems to work most days, but long term it just isn't that clear. For example, the US$ has made large up & down moves, but is basically back to where it was 5 years ago. Gold and silver have more than doubled during that time.

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