Dramatic developments drive gold market; back over $600
Gold is climbing the proverbial wall of worry as we go to e-mail this USAGOLD NewsGroup. Fundamentally, the strength of this market has been building in the background as many American investors have been concentrating on the mid-term elections, the declines in housing and the rising Dow Jones Industrial Average.
So what is creating the the uptrend in gold? To understand what's driving gold now, we need to take a serious look at the new view of the U.S. dollar establishing itself among export economies which have built huge dollar reserves. Your understanding of these transitional developments will go a long way toward solidifying the reasons for gold ownership now and in the future.
Though China hasn't officially announced a trimming of its dollar reserves, it has made plenty of noise along these lines as reported here in the last two issues of this NewsGroup. If you aren't up to date on this developing situation you need to be.
(Go to http://www.usagold. com/amk/news- group.html and look for Record foreign held debt could trigger dollar crisis and Top China officials in FT: (Gold purchases under consideration)
Now there is a new development of which you should apprise yourself:
The oil rich OPEC states along the Persian Gulf, with the United Arab Emirates (UAE) leading the way, are talking about introducing their own single currency and reducing their dollar holdings as a result. In early reports, the UAE has threatened to unload 90% of its dollar reserves. This important, breaking story is featured below.
This new trend of dollar dumping could very well spread beyond China and the Persian Gulf with enormous consequences. It cannot be sitting well with the Bush administration and the American financial establishment because of the implied threat to the bond market and the U.S. banking system.
What does this mean to gold investors?
If you haven't reached your gold quota, you need to. There will be competition for the available gold not just from your fellow investors worldwide but the official sector as well. If you are ultra-light on gold in your portfolio, you need to gear up. If you do not own gold, you are taking the sort of risks that make financial histories interesting to future generations. MK
So what is creating the the uptrend in gold? To understand what's driving gold now, we need to take a serious look at the new view of the U.S. dollar establishing itself among export economies which have built huge dollar reserves. Your understanding of these transitional developments will go a long way toward solidifying the reasons for gold ownership now and in the future.
Though China hasn't officially announced a trimming of its dollar reserves, it has made plenty of noise along these lines as reported here in the last two issues of this NewsGroup. If you aren't up to date on this developing situation you need to be.
(Go to http://www.usagold. com/amk/news- group.html and look for Record foreign held debt could trigger dollar crisis and Top China officials in FT: (Gold purchases under consideration)
Now there is a new development of which you should apprise yourself:
The oil rich OPEC states along the Persian Gulf, with the United Arab Emirates (UAE) leading the way, are talking about introducing their own single currency and reducing their dollar holdings as a result. In early reports, the UAE has threatened to unload 90% of its dollar reserves. This important, breaking story is featured below.
This new trend of dollar dumping could very well spread beyond China and the Persian Gulf with enormous consequences. It cannot be sitting well with the Bush administration and the American financial establishment because of the implied threat to the bond market and the U.S. banking system.
What does this mean to gold investors?
If you haven't reached your gold quota, you need to. There will be competition for the available gold not just from your fellow investors worldwide but the official sector as well. If you are ultra-light on gold in your portfolio, you need to gear up. If you do not own gold, you are taking the sort of risks that make financial histories interesting to future generations. MK
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