Are the metal markets a good indication of global perception of the dollar?

[Mini 14]

For the past few weeks, the foreign markets have been pushing the prices higher, only to be beaten back down when the US markets open.

Are US players overly confident in the future of the dollar?

Or do the foreign markets have it pegged?

 

[Toro]

To some extent, yes.

 

[william the wie]

Just getting on the alert list.

 

[konkon]

For the past few weeks, the foreign markets have been pushing the prices higher, only to be beaten back down when the US markets open.

Are US players overly confident in the future of the dollar?

Or do the foreign markets have it pegged?

There is a an inverse relationship between the USD and commodities. This has been the case for some time now. The patterns vary and change, but they are clearly there. You can tell at a specific time what is going on but this doesn't necessarily tell you what will happen in the future.

Don't forget that this one way traffic that we have been seeing in the last decade or so might not last. You never know, they may want more and more investors to keep buying commodities and then the big shorts come in, again. Sure there is a finite amount of commodities out there (until they start to mass produce gold etc in labs). but there always was, even when commodities lagged and the USD ruled the economic world. I think commodities will keep having their moments, for now, but they are and have always been cyclical.

 

[editec]

Confidence in the USD is down, I don't doubt that one bit.

And naturally the price of metals will rise as a result of that, too.

$38.50 oz for silver?

I think the last time I bought silver it was $7 oz.

That was what? about 5 years or so ago?

And STILL the price of US real estate is falling?


Interesting and somewhat alarming, and somewhat impossible, too, I think.

But there it is, the markets once again getting it wrong.

 

[william the wie]

Confidence in the USD is down, I don't doubt that one bit.

And naturally the price of metals will rise as a result of that, too.

$38.50 oz for silver?

I think the last time I bought silver it was $7 oz.

That was what? about 5 years or so ago?

And STILL the price of US real estate is falling?


Interesting and somewhat alarming, and somewhat impossible, too, I think.

But there it is, the markets once again getting it wrong.

With China throttling back construction from 60% of GDP to something like a more or less normal 10% a lot of "impossible" things will become quite possible.