US NBR comment on currencies and Gold

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    Interesting section from the market monitor section of Friday's Nightly Business Report:

    KANGAS: OK. Now, the last time you were with us in January, the Euro was well below the dollar level. You said it's going to get stronger. And at one time it was actually better than par with the dollar. What happens now?
    BLACK: We're a bit worried. Near term, for the next three six months, we think the Euro may trend a little bit lower. The European economy has slowed down dramatically. They had major flooding, if you remember, in August. That caused big problems in the insurance industry and it has caused the deficit ratios in Europe, according to the stability pack, to go to too high.
    BLACK: And this is going to be a bad debate for the next month or two, and I think it'll probably drag the Euro down.
    KANGAS: All right. Now, in your latest monthly market letter, you make a case for being invested in gold stocks for the long-term. Why is that? Why would you like golds when you think the market is turning into a bullish move here?
    BLACK: Well, we think, our bullishness on the market here is a cyclical one. I think over the next year or two, I think prices are going to go up. It may a year, it may last a year and a half. But our view towards precious metals and a lot of commodities is that they've made a major low in the last couple years and that they're going to steadily go up. Gold is just one example of that. There are other examples in the grains and in the base metals, as well, we think.

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