GOLD 0.51% $1,391.7 gold futures

Are we seeing a turnaround?, page-12

  1. 1,303 Posts.
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    All the gold experts say its a turnaround and they have called it spot on since sept 1999 if anyone has noticed. The US dollar is the writing on the wall here. 8.2 trillion dollars of all american assets are owned by foreigners and most of these stocks are trading at p/e ratio's 2 times higher than stocks in other countries.

    If People slowly sell out of US assets whilst they are still percieved by many to be overvalued, we will get further sell downs in the US dollar because these proceeds will be converted into other currencies. This will be a gradual but relentless process and its is expected that the swiss franc and the euro will stand to gain because these curruncies represent countires that have substantial gold holdings.

    Secondary beneficiaries are expected to be gold producing countries and their respective currencies. i.e australia and the aussie dollar. This is good news for gold bugs and bad news for equity bugs! If it comes true that is, but the framework is definately in place.

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