{"id":70418,"date":"2015-03-31T12:20:57","date_gmt":"2015-03-31T16:20:57","guid":{"rendered":"http:\/\/countingpips.com\/?p=70418"},"modified":"2015-03-31T12:20:57","modified_gmt":"2015-03-31T16:20:57","slug":"will-gold-win-out-against-the-us-dollar","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2015\/03\/will-gold-win-out-against-the-us-dollar\/","title":{"rendered":"Will Gold Win Out Against the US Dollar?"},"content":{"rendered":"<div id=\"inves-2227446064\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">March 31, 2015<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><h4>By Louis James, <a href=\"http:\/\/www.caseyresearch.com\/go\/ujmvh-2\/PIP%20\" target=\"_blank\">Casey Research<\/a><\/h4>\n<p>It is an essential impossibility to solve problems created by excess debt and artificial liquidity with more of the same. That\u2019s our credo here at Casey Research, and the reason why we believe the gold price will turn around and not only go higher, but much, much higher.<iframe loading=\"lazy\" src=\"http:\/\/trk.caseyresearch.com\/f\/?editorial=will-gold-win-out-against-the-us-dollar\" width=\"1\" height=\"1\" frameborder=\"0\"><\/iframe><\/p>\n<p>While fellow investors around the world may not agree with gold-loving contrarians like us, they are buyers:\u00a0gold is up in euros and almost everything else, except the dollar.<\/p>\n<p>The dollar\u2019s rise has been strong and seems all but unstoppable. But look at it in big-picture terms, as in the chart below, and ask yourself how sustainable the situation is.<\/p>\n<p style=\"text-align: center;\"><a href=\"http:\/\/www.caseyresearch.com\/go\/ujmyi-2\/PIP\" target=\"_blank\"><img decoding=\"async\" style=\"max-width: 600px; width: 100%; height: auto;\" src=\"http:\/\/d1w116sruyx1mf.cloudfront.net\/ee-assets\/channels\/article_default\/150331chart1.JPG\" alt=\"\" width=\"600\" \/><\/a><\/p>\n<p>I\u2019m skeptical of reading too much into such charts. A peak like the one in the early 1980s would certainly take the USD much higher, and for several years to come. But still, this is an aberration. It\u2019s not the new normal, but rather the new abnormal.<\/p>\n<p>More to the point, gold hasn\u2019t collapsed since the dollar began its latest surge last July. Just look at this one-year chart of gold vs. the US dollar. The dollar is up sharply (in EUR, as a proxy for everything-not-the-dollar and for comparability to the chart below), but gold is only moderately down.<\/p>\n<p style=\"text-align: center;\"><a href=\"http:\/\/www.caseyresearch.com\/go\/ujkjj-2\/PIP\" target=\"_blank\"><img decoding=\"async\" style=\"max-width: 600px; width: 100%; height: auto;\" src=\"http:\/\/d1w116sruyx1mf.cloudfront.net\/ee-assets\/channels\/article_default\/150331chart2.JPG\" alt=\"\" width=\"600\" \/><\/a><\/p>\n<p align=\"center\"><span style=\"font-size: small;\">Gold has been trading almost sideways over the last year.<\/span><\/p><div id=\"inves-2712865536\" class=\"inves-in-content inves-entity-placement\"><hr style=\"border: 1px solid #ddd;\">\r\n<div id=\"inpost_ads_header\">\r\n<p style=\"font-size:10px; float:left; color:#666;\">Free Reports:<\/p><\/div>\r\n<div id=\"inpost_ads\"> \r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/1ApBOV\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2018\/06\/graph_techs_PD.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t     <a href=\"https:\/\/goo.gl\/1ApBOV\"><b><u>Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p><br><br>\r\n<br>\r\n<br>\r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/f3RrHX\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2019\/01\/cot_pie_80.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t    <a href=\"https:\/\/goo.gl\/f3RrHX\"><b><u>Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p><br><br>\r\n<\/div>\r\n<hr style=\"border: 1px solid #ddd;\">\r\n<br><\/div>\n<p>That might seem like damnation by faint praise, but it\u2019s critically important. With the USD skyrocketing and commodities plummeting, gold should be dropping like\u2014well, like a gold balloon\u2014if the critics are right and it has no practical value at all, except to dentists and fashion accessory designers.<\/p>\n<p>But gold is money, the best store of wealth millennia of human experience have devised, and more and more people are recognizing this.<\/p>\n<p>Consider this chart of gold vs. the euro, which documents my contention that people outside the US do not see gold as a barbarous relic, but as an essential holding to safeguard their future.<\/p>\n<p style=\"text-align: center;\"><a href=\"http:\/\/www.caseyresearch.com\/go\/ujknk-2\/PIP\" target=\"_blank\"><img decoding=\"async\" style=\"max-width: 600px; width: 100%; height: auto;\" src=\"http:\/\/d1w116sruyx1mf.cloudfront.net\/ee-assets\/channels\/article_default\/150331chart3.JPG\" alt=\"\" width=\"600\" \/><\/a><\/p>\n<p align=\"center\"><span style=\"font-size: small;\">Pretty much everywhere but in the US, gold is up, not down.<\/span><\/p>\n<p>This chart supports my view that gold rebounded last November when it breached its 2013 low because international buyers saw that as an opportunity. The US has gone from primarily exporting inflation to exporting gold and inflation.<\/p>\n<p>The fact that the dollar has risen faster than gold has dropped has important, positive effects on miners operating outside the US. If costs are paid in Canadian dollars, Mexican pesos, euros, or really hard-hit currencies like the Brazilian real, then those costs have just gone way down relative to the price of gold.<\/p>\n<p>Of course, there\u2019s a good chance that there\u2019ll be more sell-offs before the gold bull resumes its charge\u2026 but they should be regarded as opportunities. Because once the gold market rises again, the best small-cap mining stocks have the potential to go vertical.<\/p>\n<p>Watch eight industry experts discuss where we are in the gold cycle, and how to prepare your portfolio for gains of up to 500% or even 1,000%, in Casey\u2019s recent online event, <strong>GOING VERTICAL<\/strong>. <a href=\"http:\/\/www.caseyresearch.com\/go\/ujkrm-2\/PIP\" target=\"_blank\">Click here for the video.<\/a><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Louis James, Casey Research It is an essential impossibility to solve problems created by excess debt and artificial liquidity with more of the same. That\u2019s our credo here at Casey Research, and the reason why we believe the gold price will turn around and not only go higher, but much, much higher. While fellow [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-70418","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/70418","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=70418"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/70418\/revisions"}],"predecessor-version":[{"id":70419,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/70418\/revisions\/70419"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=70418"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=70418"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=70418"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}