Thursday, September 10, 2009

A Simple Question - What the H*&% is Happening and Why aren't Prices reflecting it?

So, What the H*&% is happening?
What do I mean by that?
Have you taken a look at the dollar index recently?



What it is at this moment.



The dollar has been in a decline for days now - I haven't even seen those little bounces back and forth - up and down recently.

Lets go ahead and take a look at the last 6 months of the Dollar Index:


So, lets get this straight - the dollar high for the year was in March around the 90 range - right?

Now it is in the 76 range!
Let's see, by my calculations that is a 14 POINT INDEX DIFFERENCE! in 6 months!

Now - you still wonder why I have asked what the H*&% is going on due to the dollar index?
Let's look at this gold chart from March of 09

Gold was trading anywhere from the $890s to the $950s per ounce. Right now gold is at $988.

What I find very curious is the fact there is only a difference of about $30 per ounce of gold as it is now to what it was when the dollar was at it's strongest point this year!

How can that be? If there is even a small tip of a dollar strength at a .01% up - gold drops in price immediately. Yet, right now there is a 14 POINT DIFFERENCE in the index of the strength of the dollar from February 09.

Since this past February, we have also had the disclosure of China purchasing over 400 tonnes of gold since 2003, Barrick is now eliminating their gold hedges, besides the fact the Fed is monetizing the debt and buying the U.S. bonds, since no one else seems to want them now.

This shows, for those who have still had doubts, something is NOT right in the metals market. Since gold is priced based on the dollar at this time and the dollar has lost 14 points in just 6 months, yet gold has not reacted to that dramatic points lost on the index. That means only one thing.. some big players are behind the scenes throwing everything they have at the metals market and for the moment it is working. But for how much longer?

A wonderful article came out yesterday through GATA - this article explains almost everything about the metals market - the hows and whys of things. I highly recommend it to everyone, who is interested in metals!

http://www.golddrivers.com/gata2.aspx

Here is another article about the scams in the metal's market by the biggest players and Comex exchange that is being perpetrated on innocent people, trying to protect their dollar value.

http://www.mineweb.com/mineweb/view/mineweb/en/page33?oid=88713&sn=Detail

So, I now again ask - with the dollar index dropping, other countries buying gold, the amount of metals in EFT's and other gold funds - being a scam and the same gold being sold over and over to unsuspecting people, What the H**% is happening with the gold prices?

Oh, I believe we can add oil to the list too - the prices of oil do not match the dollar index at this time either, though that one - you won't hear me complain about. Though I know $10 a gallon or more gas prices are in our future... just how soon? Besides will it still be affordable to those who have perserved their wealth through metals?

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