Tuesday, June 2, 2009

As The Dollar Tumbles, Gold Glitters

click on image to enlarge
The yellow line in the above chart is the US Dollar Index and the orange line is the gold ETF GLD. As you can plainly see, the U.S. dollar index is in a severe decline and gold is performing in an inverse fashion (as it should, of course) and rising nicely. Silver is doing even better. The continued weakness in the dollar has also had a depressive effect on the long date U.S. notes and bonds. If this chart doesn't make you want to have Gold in your portfolio, then you will never buy gold (and your wealth will be eaten by inflation).-Lou

No comments:

Post a Comment