Nadler on Gold post Japan Quake/Tsunami

[fusscharles]

First up- Can't stand Nadler- Think he is a tool, but I do think his daily rag is a great read.

So Nadler brought up a good point on Friday's newsletter. He thinks that Japan will both repatriate cash and sell gold to create cash to rebuild. I agree that this might happen, but I also think that a ton of Japan's population will want to buy gold and silver as a short term safe haven- as they do not know what is going to happen to their economy.

I also opine (likin' the pompus Nadler word huh?) that there was probably gold lost to the bottom of the ocean from that storm... maybe some ships in passage or vaults close to the ocean? We will see in the coming weeks.

[involuntary tentacle]

unfortunately, the people of japan are just as clueless about precious metals as the united states.

[AGgressive Metal]

The Yen will rally tonight due to a sell-off in other Japanese assets and a domestic flight to safety there, but this may dissipate over the next few weeks and months as Japan prints Yen to pay for the damage and possibly bail out insurance companies. That is my best guess.

[Tourney64]

The Yen will fall as Japan's government will have to spend billions to rebuild. Some businesses will profit from this entire mess. Companies who make construction equipment like Catepillar. Wildcard is how much of Japan will be available to rebuild on after the nuclear fallout. Gold will fall as people move money out of Japan and into US treasuries. This will boost the dollar and drop precious metals.

[fusscharles]

Great thoughts... But people moving back into t-bills? That seems like a bit of a stretch

[AGgressive Metal]

Gold, silver, and Yen are all up right now as trading opens in Asia. Safety plays. Right now Japanese are running into cash and gold just like Americans did after 9/11.

Gold up $8.90, silver up 51 cents, and the Yen UP A STAGGERING 1.38% !!!! Now if I had only had the money to speculate with I could have gone long Yen with 100:1 leverage based on my prior post's call

6:21pm EDIT - Make that gold up $10.50 and silver up 54 cents. Eat my shorts Nadler.

6:23pm EDIT - Yen only up 0.59% now - Kitco quotes are slow and crappy

[fusscharles]

And.......... A decoupling from oil. Love seeing that! Now if we can just cut equities from drafing gold, i think we might see another small bull run!

[Tourney64]

Looks like my predictions are right on, it just took a day for the dust to settle.

[Jonflyfish]

The Japanese yen has been very strong with the USD/JPY reaching down to 80.72 today. This, along with asset liquidations is most likely due to repatriation.
However, this will change and the USD/JPY will work back towards 110. Poised to be one of the best long term currency plays IMVHO.