Tuesday, November 30, 2010

Heads - GLD/SLV goes higher ... Tails - GLD/SLV goes higher

The classic inverse correlation between the reserve currency, i.e., USD$, is no longer the case... Recently, US dollar has risen from 76 to 81 but gold, silver or even other industrial metals have not corrected at all...Oil? Same thing. The hard commodities are no longer inversely correlated to US dollar. At least thats what appears to be the case - correct? Yes, it may be so - in the short term. I would encourage for one to wait for some more time (no one can predict timing and this is where people get burnt) and see for themselves how the prices readjust to reality in a jiffy.

Currently, the only reason for the dollar to rise is because Euro is going down due to debt concerns - the whole world is ready to crank up the printing presses. So, metals and commodities are acting as safe heavens. Hmm......
With patience of cats, stamina/persistence like dogs and strength of a rhino = One mighty meal that covers for the entire year!