Money Madness : Why is the Dollar going up and gold and silver down now?
Posted on October 20th, 2008 in General, Q & A
How will this bottom out and will it sit at the bottom for days, hours, weeks , or months?
Despite our financial problems in the US, Europe and Asia are experiencing as bad, if not worse, a crisis.
Traditionally the US has been seen as a safe haven. This is still true and that’s why people are buying US treasuries; they are still considered the proverbial safe–money under your mattress as it were.
Gold and silver have come down because the dollar is getting stronger and people are buying dollars instead of gold and silver. A stronger dollar diminishes the value of gold and silver as a safe haven.
Brian, it’s hard to say how long this will last. This recovery will be quicker than that of the Great Depression. But it still may last a few years.
~Spencer
Some lins you may like relating to Gold, The Dollar, and precious metals :
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Gold and Silver News & Headlines for November 26 | Gold and Silver … – The gold price over Thanksgiving. Will the bullish bent for gold hold true this Thanksgiving Thursday and Friday? Gold vs. Oil: Gold is Winning. If you haven’t seen a chart of the gold/oil ratio lately, check out this article. … Gold vs. the Dollar – Some of the price declines which occurred in the 19th century were caused by the retirement of the greenback and the demonetization of silver. Always it was caused by government. Never was it caused by ordinary people. … Gold Vs. Silver Vs. Platinum – What’s interesting is the percentage of gold that goes to investment. While a much larger percentage of gold is used for investment purposes than silver, it is still less than 20%. By far, gold’s most common use is in jewelry. … |
My theory to why the American dollar is going up in price, was that the goverment is buying up so much beaten down bank stocks. Those stocks will have to rise in value eventualy, thus giving value to the american dollar. am i at all correct with that assumption?
The dollar is going up b/c it’s perceived as the world’s safe haven right now.