USD and Gold

[Pascal]

These two moves do not make sense. Money is moving out of the bonds market, out of the US$ and into equities, including materials based equities, but not gold and gold miners.

This does not make sense. It is a pure artificial gold "take down." We could think that the Fed would agree that money moves out of T-Bills and into equities, because of the "positive effect," but gold is a non-productive instrument in the Fed's eyes. It is worst than savings, because it is money taken out of the market place at a time of furious re-inflationary policy.

At least, FB is up more than 3% today. Let's not forget that this is the company that offers one of the best salary packages of the Internet world and probably one of the worst business plan. I believe that I should sell gold to buy FB stocks, because FB founders must be very eager to sell their free stocks to buy gold.

We need to continue watching the US$. Currencies are impossible to manipulate (at least in duration!) The other markets can be.


Pascal