Tuesday, November 30, 2010

When Nothing Makes Sense Buy Gold

That's what I see this morning.  Gold continues to rise despite a dollar that continues to scream higher:

Here is the rising gold chart:

Here is the US dollar:

My Take:

Since the open the dollar has pulled back a bit, but if you look above you can see that the spike in gold occured at the same time the dollar was at it's strongest.  Let me put up one more chart.

Treasuries are also soaring this morning.  Let's take a look at the 10 year bond:

The Bottom Line

Translation?  People are scared ****less and have no clue where to put their money.  They don't trust any currencies, they don't trust stocks, and they don't trust Wall St.

As a result. investors end up going back to "old school" flight to safety investments like gold, bonds, and cash.

The Eurozone mess continues to worsen.  The trading robots have managed to control the pain over here thanks to some better than expected Chicago PMI and consumer confidence numbers.

The way I see it, a confident consumer is not a positive in this environment because about 20% of them are jobless.  The fact that they are spending(and the data is starting to show this) and not saving is pretty horrifying when you think about it.

When TSHTF these people will be wandering the streets homeless wondering how this all happened.  I find it sad that the majority of the people in this country are so stupid.

The elite continue to dangle consumer carrots in front of the serfs and they continue to take the bait using their unemployment checks and what little left they have saved.

Anyone with a brain should be hoarding cash right now.  The debt bubble freight train is heading right at us full speed ahead and there is nothing we can do at this point to stop it.

Europe will go down first and we will quickly follow them.  I am loving this huge move higher in treasuries.  Once the PIIGS go down US bonds should be at near all time highs.

This will create the short of the century as we get targeted next.  Remember folks, we are Greece, but risk is relative so our bonds and currency should fare well as the European crisis plays out.

Don't be fooled when this happens because once the PIIGS are done getting  torn apart we are next.


Buy Gold said...

With a pretty unstable economy, going back to basics is somehow a smart move. Anyways, gold will never go down no matter what.

Anonymous said...

Hey Jeffy, want to discuss todays Case Shiller results?

18 of the 20 areas measured by CS went down, however, 2 of them continued to post gains. Want to guess which city is in that group of 2?

Let me guess, just like it was last month as prices continued to rise, todays results make you "more confident than ever" that DC Case Shiller will hit 125 by May 2012, right?


Jeff said...


I could care less about the DC Case Shiller at this point.

There are much bigger things to focus on right now.

You have been right so far. There is a ways to go.


Jeff said...



I think gold is becoming a hedge for currencies at this point.