The U.S. Dollar Can’t Find A Bottom

CNBC reported that “Adjusted For Inflation, Dollar Hits Fiat-Era Low.” Economists at Deutsche Bank calculated the value of the dollar on a trade-weighted basis and then made adjustments for inflation. Their conclusion is that the dollar is at its lowest point since the U.S. went off the gold standard under President Richard Nixon.

The full article is worth a read but here is a key quote:

“The recent parabolic spike in silver and to a lesser degree gold, shows that the market considers a ‘disorderly decline’ of the U.S. dollar an increasing possibility…”

Gold has trended straight up since its recession lows

Gold has trended straight up since its recession lows


Source: stockcharts.com

Click here to see how the U.S. stock market remains in an 11-year sell-off when priced in gold.

Gold also looks to continue higher. According to a recent article in Bloomberg:

“Central banks that were net sellers of gold a decade ago are buying the precious metal to reduce their reliance on the dollar as a reserve currency, signaling demand that may extend a record rally in prices.”

Silver's rise has accelerated over the past year

Silver's rise has accelerated over the past year


Source: stockcharts.com

Disclosure: author owns GLD, PAAS

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