Wow, what a blow!
Today we noticed a spectacular increase of the value of the USD.
The markets see the USD as a safe haven in todays uncertain markets with numerous geo-political challenges.
- Situation with Iran
- Situation with Turkey
- Brexit situation in the EU
- Growing trade and tariff wars
- Regulated low interest rates
- Ever growing Debt positions
See the charts of the USD against the Turkish Lira and the Euro:
Although I would like to see that the precious metals would be seen as the safe haven, but they are absolutely not! The strong dollar and the low interest rates are pushing the precious metals to lower levels. Gold price below USD 1,195 and Silver falling to USD 15 an ounce.
So are the precious metals an opportunity or is it catching a falling knife?
My personal approach is to look at the present situation as an opportunity in the longer term because it is my feeling that the present day USD and interest rate situation, is in the long run not sustainable.
But do your own math and decide for yourself.
Enjoy!
PS: if you were living in Venzuela or Turkey, I think you would have been extremely happy with a position in the precious metals 🤨. On the other hand it would be nice to have US Dollars to.
Dilemmas!
People all over the World, who are holding Dollars, will not suffer a loss in Purchasing Power, when the Reset Switch is Flipped... I can't say the same about other Currencies... I have a great new post on how I think you can claim your share of the Biggest Transfer of Wealth, the World has ever seen... And no, it won't have anything to do with the Melt Value of our U.S. Coinage...
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