strong dollar, weak....

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strong dollar, weak....

Postby gojomoso » Mon May 16, 2011 2:10 pm

since the dollars getting stronger the price for commodities is going down, does that mean we could see a goodly sized drop in the price of silver/gold/copper/etc. as the economy gets better?
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Re: strong dollar, weak....

Postby Pennysaved » Mon May 16, 2011 2:40 pm

I don't think the dollar will strenghten for long.

Did you see today that we technically hit the debt ceiling? How could that be strong for the dollar long term?

Either we default or print more $$$; don't think either of those will strengthen the dollar.

I think either scenario will be bullish for PMs.
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Re: strong dollar, weak....

Postby brian0918 » Mon May 16, 2011 3:37 pm

What makes you think the economy is going to get better? Does a heroin addict get better by shooting up more? He might feel better for a little while, but in the long-run he's going to be worse off as a result.
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Re: strong dollar, weak....

Postby gojomoso » Mon May 16, 2011 5:06 pm

Pennysaved wrote:Either we default or print more $$$; don't think either of those will strengthen the dollar.


well technically we don't "print" more money, the gov't really just pulls it out of thin air


but this is just a hypothetical question
IF the dollar gets stronger could we not see a major dip in silver prices?
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Re: strong dollar, weak....

Postby Jonflyfish » Mon May 16, 2011 5:47 pm

gojomoso wrote:since the dollars getting stronger the price for commodities is going down, does that mean we could see a goodly sized drop in the price of silver/gold/copper/etc. as the economy gets better?



Yes. Some will debate the structural issue of the USD (Which, by design, isn't going to improve over the very long term) and miss the market focus on asset liquidation, interest rate structure changes (huge FX flows) coupled with emerging markets rolling over and doing a belly-flop, killing the current commodity demand cycle. The USD is not dead nor is the primary reserve currency status, at least not for now. Some small diversification away, but USD is the primary global reserve currency of choice, maybe not for small players, but BIS level institutions.
I see a whole school of minnows about to be swallowed whole. Perhaps I'll be 100% wrong, but something tells me otherwise.
The USD recovery cycle will be the Realcent Black Swan event.
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Re: strong dollar, weak....

Postby Treetop » Mon May 16, 2011 5:51 pm

Jonflyfish wrote:
gojomoso wrote:since the dollars getting stronger the price for commodities is going down, does that mean we could see a goodly sized drop in the price of silver/gold/copper/etc. as the economy gets better?



Yes. Some will debate the structural issue of the USD (Which, by design, isn't going to improve over the very long term) and miss the market focus on asset liquidation, interest rate structure changes (huge FX flows) coupled with emerging markets rolling over and doing a belly-flop, killing the current commodity demand cycle. The USD is not dead nor is the primary reserve currency status, at least not for now. Some small diversification away, but USD is the primary global reserve currency of choice, maybe not for small players, but BIS level institutions.
I see a whole school of minnows about to be swallowed whole. Perhaps I'll be 100% wrong, but something tells me otherwise.
The USD recovery cycle will be the Realcent Black Swan event.


curious.... do you see this as a shorter term thing? Like lets say a few months to a year? Or as the actual direction for the dollars ultimate future....
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Re: strong dollar, weak....

Postby Jonflyfish » Thu Jun 23, 2011 12:06 pm

Jonflyfish wrote:
gojomoso wrote:since the dollars getting stronger the price for commodities is going down, does that mean we could see a goodly sized drop in the price of silver/gold/copper/etc. as the economy gets better?



Yes. Some will debate the structural issue of the USD (Which, by design, isn't going to improve over the very long term) and miss the market focus on asset liquidation, interest rate structure changes (huge FX flows) coupled with emerging markets rolling over and doing a belly-flop, killing the current commodity demand cycle. The USD is not dead nor is the primary reserve currency status, at least not for now. Some small diversification away, but USD is the primary global reserve currency of choice, maybe not for small players, but BIS level institutions.
I see a whole school of minnows about to be swallowed whole. Perhaps I'll be 100% wrong, but something tells me otherwise.
The USD recovery cycle will be the Realcent Black Swan event.



Haven't been here in a while due to work and the newborn baby etc. Came across this post and gave some pause...
Black swans are swimming?

Cheers
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Re: strong dollar, weak....

Postby TXBullion » Thu Jun 23, 2011 1:11 pm

Jonflyfish wrote:
Jonflyfish wrote:
gojomoso wrote:since the dollars getting stronger the price for commodities is going down, does that mean we could see a goodly sized drop in the price of silver/gold/copper/etc. as the economy gets better?



Yes. Some will debate the structural issue of the USD (Which, by design, isn't going to improve over the very long term) and miss the market focus on asset liquidation, interest rate structure changes (huge FX flows) coupled with emerging markets rolling over and doing a belly-flop, killing the current commodity demand cycle. The USD is not dead nor is the primary reserve currency status, at least not for now. Some small diversification away, but USD is the primary global reserve currency of choice, maybe not for small players, but BIS level institutions.
I see a whole school of minnows about to be swallowed whole. Perhaps I'll be 100% wrong, but something tells me otherwise.
The USD recovery cycle will be the Realcent Black Swan event.



Haven't been here in a while due to work and the newborn baby etc. Came across this post and gave some pause...
Black swans are swimming?

Cheers


Nice to have you back JFF. Do you mean that black swans are swimming in the USD or your post? Not sure if I was understanding it right.
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Re: strong dollar, weak....

Postby 68Camaro » Thu Jun 23, 2011 1:44 pm

Not sure what Jon meant, interested to hear the clarification.

But as far as USD, I have little doubt that the Euro will crash before the USD does, which will drive the USD up. For a time. But only for a time.
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Re: strong dollar, weak....

Postby shinnosuke » Thu Jun 23, 2011 2:26 pm

68Camaro wrote:Not sure what Jon meant, interested to hear the clarification.

But as far as USD, I have little doubt that the Euro will crash before the USD does, which will drive the USD up. For a time. But only for a time.


And at what point will we be sold a world currency as the means of stabilizing the forex craziness?
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Re: strong dollar, weak....

Postby avidbrandy » Fri Jun 24, 2011 8:08 pm

short the german stock market. As soon as the new mark appears, buy into it.
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