Archive for September, 2009
Dollar Retreats in Broad Sell-Off
NEW YORK — The dollar sold off broadly overnight Tuesday, reversing gains from the two previous global sessions to hit new 12-month lows against the euro and Swiss franc.
Investors turned to higher-yielding currencies as most Asian shares and European stocks moved higher, triggering a new wave of risk-taking. In early New York trading, high-yielding currencies have backed off their overnight highs and trading is somewhat volatile.
The dollar bloc currencies were the top performers in the overnight session, led by the New Zealand dollar, which set a new high for the year after posting its lowest annual current account deficit in more than four years, said Brown Brothers Harriman analysts.
The euro hit $1.4822 — a fresh 12-month high — and the dollar hit 1.0216 Swiss francs — a new 12-month low — as traders abandoned the positions they had staked out Monday in anticipation of this week’s meetings of the G20 and the Federal Open Market
Took my chevy to the levy, but the levy was dry
Personal spending as dropped in four of the last six quarters. That has not happened since records began in 1947!
In the States the consumers’ net worth is down – from $62Trillion to $50 Trillion. In both the UK and the US the currency is being debased by the minute – gold has already passed the $1000 an ounce and silver is poised to clear the £10 mark!
Remember the days when a silver dollar was worth – well, a dollar!
So for those who where surprised when the banking crisis hit and were under the impression it was lack of money that caused it – think again. The Fed and the bank of England are busy keeping the printing presses going, to fill up the reservoir – but the hole in the levy is called debt….
All that glitters
Despite the move from the stock market to more solid , like gold, the average price of gold has still remained in the region of $900US per ounce.
INVESTORS BEWARE
Investors in gold have two traditional routes – one is to physically store gold coins and/or bars in the house or a bank vault – or to accept a certificate from the seller. The seller must have at least 90% of physical gold to back the certificates they issue.
We have all seen the results of fractional lending by the major banks getting out of control -as the dollar gets closer to total collapse expect to see that 90% rule breached – as it stands at the moment I would bet if 50% of certificate holders wanted their gold it would cause a very serious problem.
Investing in gold and silver is a wise move – but a piece of paper may end up being just that!
