Category: precious metals

The last time the U.S. dollar sank beneath the weight of low-yielding Treasury bonds, soaring oil prices and a looming recession, Bette Midler — the comedienne and singer — famously demanded that her $600,000 fee for a European tour in 1978 be paid in South African gold coins.
Smart move! Eighteen months later, that little mountain of Krugerrands would have been worth $2.1 million. But did Ms. Midler show more brains...if not beauty...than today's ex-dollar superstar?
Gisele Bundchen actually seems keen to quit the U.S. altogether. (Maybe The Enquirer should tell her current beau, Tom Brady of the New England Patriots...) She cut the asking price of her New York penthouse just last weekend. Now her West Village apartment, with views of the Hudson thrown in for free, is on the market for $9.2 million — down from $10.9 million previously — according to the New York Post.
“In Tribeca,” the rag goes on, “Russian supermodel Natalia Vodianova has discounted her alluring 5,000-square-foot penthouse from $11 million to $9.9 million.”
Are the beautiful people turning bearish en masse on both the greenback and U.S. real estate? They might want to show the brains of Bette Midler...instead of the tanned midriff of Gisele.

Since the dollar reached parity with the euro, for instance, exactly five years ago this week, gold priced in euros has risen by nearly 70%.
Yes, that pales next to the gold price in dollars...now more than 140% higher from this time in 2002.
And yes, “Gold is the most reliable performer as a hedge against dollar movements,” as Rhona O'Connell found in a research report for the World Gold Council last month. She compared the performance of various commodities — everything from zinc, cattle, heating oil and palladium to sugar — with the dollar's changing fortunes on the currency market.
O'Connell's yardstick for the U.S. dollar was an index of the world's next five most important currencies. Gold bullion mirrored the changes in this dollar index more closely than any other physical commodity from January 2005-July 2007.
But gold is delivering much more than simply a dollar hedge. Given the political and economic barriers to raising interest rates anywhere in the world right now, you might wonder if it's going to keep on giving, too.
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The answer to: "Gold vs the Dollar vs Currencies (11/16/07)"

Question asked on 11/16/2007 at 06:07 AM :: Comments to date: 0

Category: currencies

US dollar index (84.05) The dollar is rallying, following the media’s
shouting about its demise. Support is at 82-83.50 and 79. Resistance is
at 85-86 and 88. Once this snapback rally has run its course, look for
sellers to regain the advantage and send the dollar to fresh lows.

Question asked on 12/24/2006 at 04:15 AM :: Comments to date: 0

Category: Quote of the Day

“A MAN may buy gold too dear,” wrote the English playwright John Heywood (1497-1580) in his collection of proverbs published in 1546.
Heywood was born and raised near London, and educated at Oxford. In his day, Heywood was well known for his plays, poems, and collections of proverbs. His skill in music and his inexhaustible wit made him a favorite with King Henry VIII and Queen Mary. Heywood is important in the history of English drama because he was among the first writers to turn the abstract characters of morality plays into real persons. There is quite a bit of Heywood’s influence in the writings of William Shakespeare (1564-1616). Under the reign of Queen Elizabeth I (1533-1603), Heywood fled to the European mainland to avoid religious persecution for his Catholic faith. Heywood died in Belgium. Heywood’s legacy to the English language is immense.

Even today some of these sayings have been modernized from his time period style of English.

Some of his more famous sayings, from an anthology published in 1546, are as follows:
(Continued)

The answer to: "Historical Quotes, Gold & Currencies. (8/15/06)"

Question asked on 08/15/2006 at 05:37 AM :: Comments to date: 0

Category: currencies

And how does this correlate to credit risks?
Freddie Mac reports that 88% of all refinanced loans in the first quarter were cash-outs, with homeowners taking more money out of their homes. For the first time in five years, more than half of these cash-out refinancings came at a higher interest rate than the original loan. Some homeowners are switching from adjustable rate to fixed mortgages, to try and get the jump on interest rates-and swallowing monthly payment hikes of 70% or more.
How will this affect commodities.

The answer to: "Forces against the Dollar? (6/20/06)"

Question asked on 06/20/2006 at 05:17 AM

Category: currencies

Fridays action shows that pressure is still on the US Dollar.
A potentential contrarian trade is to buy the $ with a close stop under the lows, for a low risk trade.
On the bear side go with the trend and sell the dollar with a stop on the down trend Line.
Inflatiion is still here which makes for a nervous dollar.

Question asked on 06/04/2006 at 06:19 AM