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Today's Deals on Gold & Silver. See Options Here
>>>
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** Market Conditions Alert
**
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With gold and silver pulling back from
their all-time highs over the last few days, the naysayers on Wall Street –
who totally missed the huge rally in both metals since Labor Day –
have boldly declared the top is in.
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They further claim the
dollar "debasement trade" has ended... and the U.S. dollar is set to strengthen.
We believe this is wishful
thinking by the "paper bugs" who always seem to find a new excuse to bash gold and
silver – and ridicule those who buy it.
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As we're now 25 years into a secular
bull run that has seen precious metals outperform U.S. stock indexes, you'd think
these Wall Street sharpies would have finally changed their tune.
But the mainstream financial industry
in America has a dollar-centric frame of reference – and they generally
compare the dollar to other fiat currencies.
Versus those other currencies,
sometimes the Federal Reserve note dollar strengthens, sometimes it weakens.
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It's better to view gold
versus fiat currencies as a whole. They are ALL being debased –
just at varying rates.
Twenty years ago, the
Dollar Index (DXY) was trading at 80; today it's trading at 99.
When using this "dollar"
frame of reference, the dollar appears "stronger" than most of its fiat currency
peers. But that's ridiculous.
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In reality, the purchasing power
of the dollar has dramatically declined over that same 20-year period. In
2005, gold was trading around $500 and DXY was roughly 80. Today, gold is $4,000+
while the DXY is 99.
That means gold is up over
8-fold measured in those supposedly "stronger" dollars.
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Put another way, the dollar has declined 88%
versus gold over the last 20 years. Talk about dollar debasement!
Folks are buying gold
– including central bankers – in order to reduce exposure to fiat
currencies.
But most investors in
the Western world are still massively underexposed to real money, and
dangerously overexposed to paper money. This will change.
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Other Great Options to
Consider
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This copyrighted material may not
be republished without express permission. Offer only available through email
promotion. Offer does not apply to previous orders and may not be combined with
any other offer or program. Special shipping rates or other restrictions may apply
to international orders. The information presented here is for general educational
purposes only. Money Metals Exchange and its staff do not act as personal
investment advisors. Nor do we advocate the purchase or sale of any regulated
security listed on any exchange for any specific individual. While our track
record is excellent, investment markets have inherent risks and there can be no
assurance of future profits. You are responsible for your investment decisions,
and they should be made in consultation with your own advisors. By purchasing from
Money Metals, you understand our company is not responsible for any losses caused
by your investment decisions, nor do we have any claim to any market gains you may
enjoy. Money Metals Exchange is not a regulated trading ???exchange??? as defined by
the CFTC and the SEC.
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