Gold as a Currency

 

 

Trader Scott’s Market Blog

February 11, 2017

Click to sign up for Trader Scott’s Free Market Updates or e-mail [email protected]

 

 

In a post from January 2015, my belief was gold would continue to perform well against the the big currencies, but the S would temper the gains: “….We’re getting closer to that time and now people need to be watching the out performance of gold vs. all the Components of the USD index.This is important going forward as I remain very bullish on the Dollar.” And over the last two years, gold performed well against the basket except the $, and the Yen, somewhat. Those two are both a problem, the Yen’s positive and the $’s negative correlation, but that will change. This fine website is a good place to follow these various relationships. The Yen is still correlated well with gold, but “The Times They Are a-Changin. In the longer term, gold will generally have a negative correlation with the crappy paper currencies.

So now a couple of years later, and it’s mainly about the $, and several posts last Fall were about a slow change coming – from a November post: “….A strong $ will keep a lid on gold advances, but that lid will loosen next year. It’s the main reason why for years my mantra has been to have patience with gold. It’s when the real banking troubles start to broaden (likely next year), when the $ and gold will rally together.” A few on Wall Street are catching on. Wall Street is generally two years behind in recognizing any major trend changes, especially when it comes to the resource sector, but there are a few bright bulbs in the crowd. Peter Boockvar has an interview on King World News today: “This week was actually an interesting performance for gold in that you had a couple of days where the dollar had pretty good rallies and gold was up also. And you just have to ask yourself now whether this is a change in dynamic? Everyone is trained to think that gold goes down when the dollar rallies and vice versa. But maybe gold is going to be treated (as its own currency) vsother fiat currencies, regardless of whether it’s the dollar or some other fiat currency…” All gold needs is one major currency to be in trouble, not necessarily the $. And right now it’s the Euro which is in trouble. The current relationship between gold and the $ will ebb and flow. But it’s the Euroland political problems, and the insanity of Professor Mario Draghi, PhD with his negative interest rates (he probably got the brilliant idea from Larry Summers), which will really help gold.

 

 

About

Trader ScottTrader Scott has been involved with markets for over twenty years. Initially he was an individual floor trader and member of the Midwest Stock Exchange, which then led to a much better opportunity at the Chicago Board Options Exchange. By his early 30’s, he had become very successful in markets, but a health situation caused him to back away from the grind of being a full time floor trader. During this time away from markets, Scott was completely focused on educating himself about true overall health and natural healing which remains a passion to this day.Scott returned to markets over fifteen years ago where he continues as an independent trader.



Missing Podcast?

If you see an error with an archived podcast or know that an episode of our show is missing, please press the button below to send us a message so we can look into it.

Enter your name and email if you want to be notified when this podcast is fixed:

'Trader Scott’s Market Blog – Gold as a Currency – February 11, 2017' have 3 comments

  1. February 12, 2017 @ 11:21 am traderscott

    David left a comment recently about FCEL stock – clean energy. There was a sign of strength which showed up on Friday. I’ve talked about this sector a few times, and with a general stock market this high (and no, not a crash scenario, just really high), there are several very out of favor sectors. Mexico is one, agriculture also, along with the whole clean energy sector – on weakness. There are a lot of possibilities there. Solar, battery, fuel cell, etc. The ETF route could be TAN, PBW, KWT, ICLN – on weakness.

    Reply


Would you like to share your thoughts?

Your email address will not be published.

©Copyright One Radio Network 2014 • All rights reserved. Site built by RedLotus AustinThe information on this website and talk shows is solely for informational and entertainment purposes. IT IS NOT INTENDED TO PROVIDE MEDICAL ADVICE. Neither the Editors, producers of One Radio Network, Patrick Timpone, their guests or web masters take responsibility for any possible consequences from any treatment, procedure, exercise, dietary modification, action or application of medication which results from reading or following the information contained on this website in written or audio form, live or podcasts. The publication of this information does not constitute the practice of medicine, and this information does not replace the advice of your physician or other health care provider. Before undertaking any course of treatment, the reader must seek the advice of their physician or other health care provider and take total responsibility for his or her actions at all times. Patrick Joseph of the family of Timpone, a man...All rights reserved, without recourse.