Has the True Gold Bull Begun & the Coming World Currency Crisis
Sol Palha
Gold in US Dollars
Gold bullion really looks like it is in a super bull market when one looks at it in dollars, but take a look at gold in other currencies and you see the makings of the "coming world currency crisis" what we are witnessing right now are just the first rumblings of this huge major upheaval that is slowly taking place. The mighty dollar has been dethroned and the other currencies are just providing temporary safe havens as the rats jump from one sinking ship to one that has only sprung a leak but is rapidly filling up. The end will not be pleasant as every major currency starts to collapse.
Gold will ultimately rally in every major currency, that will be the time we will have a feeding frenzy in Gold Bullion and Shares and at the same time we will slowly be leading to the panic stage where gold will start truly taking of, it will not be unnatural towards the end to see spikes of $100 or more day. I am going to put all the charts of the weak currencies first and surprise, surprise Gold is gaining value in all the major( weak) currencies of the world, to date and losing value in the smaller stronger currencies.
Gold in Deutsche Marks
Gold in French Francs
Gold In British Pounds
The stronger currencies
At this stage even the Indian Rupee is much stronger than the US dollar as you can see that the current highs of Gold bullion priced in Dollars are not reflected when Gold is priced in Rupees. The price of Gold was still higher in Feb O3 than it is in November 2003. It pays to keep an eye on the price of Gold in other currencies, if you don't have time consider joining our free newsletter, where we will attempt to inform you of new break outs or break downs.
Gold in Indian Rupees
The big boys when it comes to currency strength.
Gold in Euros
Gold in Japanese Yen
Gold in Australian Dollars
Gold in Canadian Dollars
The big daddy of them all the South African Rand, the strongest currency in the word
I have been bullish on the Rand since Nov 2002, those that heeded that call have made a fortune in futures and over 100% by just switching currencies. However that's not the point right now, the point is that in Rands gold has been getting hammered to death, and when it breaks out here, watch the Feds get ground into mince meat and the true nightmare for the ignorant will begin
Gold in South African Rand
Conclusion
Gold is currently rising in price in the weaker currencies, once the strongest currencies, now they are slowly but surely taking in their last gaps of air. This is just a sign of what is to come, eventually all the currencies will crash and then we will have the true grandfather of all currency crashes as there will be no safe place to run to except Gold, the ultimate currency. We are waiting for a pull back before we go on a buying spree in Gold stocks, however use any significant pull back to add gold and Silver bullion to your portfolio.
Commentary from John Tyler www.infognome.com
I would like to throw my support behind Sol; you'd better listen, or the golden opportunity of a lifetime will be missed.
We were out fishing the other day, and my mate "Nifty" Neville the plumber was quizzing me on investments as we toiled in piscatorial heaven, dragging the next few day's dinner from the ocean bottom. ("Nifty" Nev inspired me to write "The Nifty 50 Trading System" - he was about to spend $8000 on a "black box" system that promised immediate fortune. This mob went out of business the next month).
The advice always goes both ways, and "Nifty" Nev gave me his spiel on the stupidity of buying gold. He told me how twenty years ago, one of his workers bought a miniature gold ingot and wore it on a chain around his neck. He had bought it at the top of the last Bull Run when gold hit $800 an ounce.
"Nifty" Nev was right and wrong. Timing is crucial. Don't get caught buying at the top!
There are multiple forces at work that are combining to produce a typhoon of gold speculation:
- Gold will rise in value across all currencies, and will become the only "money" of value
- Inflation will, become more apparent in every day prices of consumer goods
- All the big miners will have few hedged forward positions. Barrack is now unwinding its huge forward hedge book. This has acted like a pressure release valve on any of the recent gold runs. This will be gone.
- Big new gold discoveries are harder to come by. Miners are going deeper.
I could continue, but there is still a nasty fish infestation for "Nifty" Nev and I to work on. As we were pulling in the lines, Nifty's line when taught. The reel screamed. An 80 lb. Line was snapped as if it were gossamer.
Gold is the big one; don't let it get away.
"Fortune Favor the Informed" John Tyler AKA "The Infognome".
Sol Palha
TACTICAL INVESTOR
www.tacticalinvestor.com
November 25 2003
Email this Article to a Friend 
Printer Friendly Version
