Do you think the US Government will collapse the Dollar?
Check out this presentation, and add your comments. Do you think the US Dollar will collapse (with or without the help of the US Government)?
Jose Paul Martin is an investor, merchant banker and philosopher. You'll find stuff that cant be contained within 140 characters. If you want 140 characters, follow me on @jpmartin. Also visit: jpmartin.com or avcion.com or jpm.fm
Disclaimer: Views expressed here are entirely mine and may not be regarded as views of my employer. All information here is educational purposes only.
Check out this presentation, and add your comments. Do you think the US Dollar will collapse (with or without the help of the US Government)?
$/ounce of gold = $/FC x FC/ounce of gold.
Stare at that equation for a minute. Any time you see the price of gold rise, one of two things must be true. Either the foreign price of gold (FC/ounce of gold) has increased, or the value of the dollar must have declined (i.e. foreign currencies have become more expensive, and $/FC has increased).
As a result, huge and sustained moves in the price of gold require either 1) worldwide inflation, or 2) a plunging U.S. dollar. Unquestionably, rising inflation - particularly worldwide inflation, is a plus for gold prices, but the real action comes when inflation rates are rising worldwide and the dollar is under pressure.
If you really want to understand a bit on gold, check out this article... it will be worth its "wait" in gold.
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