quote by W.B. It doesn't have much to do with Gold prices but as for weakening other currencies this is short term, the Dollar is being artificially inflated at the moment as a result of oil being at a four year low.
I totally disagree with your rational here Wroclaw Boy.
Oil's crash is being misinterpreted by many investors such as yourself.
Let me para phrase and condense an article that explains it best.
The MAIN STORY is the $9 TRILLION US Dollar carry trade.
Drilling for Oil, producing Oil, transporting Oil are extremely expensive processes.
This means unless you have hundreds of billions of Dollars in cash lying around you're going to have to borrow money.
Borrowing US Dollars is the equivalent of shorting the US DOLLAR.
If the US Dollar rallies, then your debt becomes more and more expensive to finance on a relative basis.
In this scheme, a US Dollar rally is Oil negative.
Oil's collapse is predicated by one major event: the explosion of the US Dollar carry trade.
Worldwide, there is over $9 TRILLION in borrowed US Dollars that has been ploughed into risk assets.
Economies that are closely aligned with commodities (all of which are priced in US Dollars) are getting demolished too.
Just about everything will be hit as well.
quote by W.B. i would personally change your money today at 3.48, don't think its likely to go much higher and i would be surprised if it stays at this rate for very long.
What is "very long" ? I can see things getting a lot worse for the E.U. as the U.S.D. continues to strengthen.
Most of the "recovery" of the last five years has been fueled by cheap borrowed Dollars.
Now that the US Dollar has broken out of a multi-year range, you're going to see more and more "risk assets" blow up.
Oil is just the beginning, not a standalone story.
If things really pick up steam, there's over $9 TRILLION worth of potential explosions waiting in the wings.
Imagine if the entire economies of both Germany and Japan exploded and you've got a decent idea of the size of the potential impact on the financial system.