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Old 10-26-2011, 07:58 PM   #1
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Lightbulb Buying opportunity imminent if Euro falls?

David Morgan says yes and I tend to agree:
Quote :
... if the Euro begins to falter, the U.S. Dollar Index will rally sharply. In the long run I am not bullish on the U.S. Dollar, however in the case of a major event coming out of the Eurozone the Dollar will be one of the prettiest assets, among the ugly fiat currencies.
If I am right about the U.S. Dollar rallying higher, the impact the rally would have on gold and silver could be extreme. While I think gold would show relative strength during that type of economic scenario, I think both metals would be under pressure if the U.S. Dollar started to surge. In fact, if the Dollar really took off to the upside I think both gold and silver could potentially selloff sharply.
While the price action will be painful, those prepared and flush with cash will have an amazing buying opportunity in gold, silver, and the mining complex. Right now, risk remains excruciatingly high as the European bureaucrats wag the market’s dog.

The only caveat I forsee is that if the dollar rallies too strongly, the Fed will intervene (what's that you say? currency manipulators? No, no - that's China... lol). Expect massive QE IMO. Still, I think there will be a lag to their response and there will definitely be a buying opportunity assuming you can find any physical metal at fire sale prices.
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Old 10-27-2011, 08:51 PM   #2
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The longer metals stay kind of flat and take a few dips the better so we can stock up. In the long run, I agree that there will be QEinfinity and a shortage of physical.
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Old 10-28-2011, 12:29 AM   #3
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While it might be better for you and me to be able to accumulate more gold, it's not a good thing for our nation. A quick resolution would be much preferred.
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Old 11-17-2011, 02:26 PM   #4
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Or, unless the ugly sister routine does not work this time.
And people pile into PM's.
We are the largest holders of Treasuries,(no one wants them any longer) and globally people are getting away from dollars and into hard assets.
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Old 01-17-2012, 06:13 PM   #5
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Originally Posted by DosZap View Post:
...and globally people are getting away from dollars and into hard assets.
...apparently, not so much... recent aftershocks in EU have caused Dollar to appreciate very much, while PMs still are making their minds ( well, recently they are up & nicely so, BUT... It still seems that (for now), dollar is seen as a safe heaven, in times of meltdown. For now, that is... But the investors community, by and large , seems to be equally clueless as for the fundamentals, and imminent things to come.

The most annoying thing is, that this clueless mass, acting like sheep together, has much more impact on one's portfolio, than strong analysis and fundamentals.
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