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US fiat: great effort but no performance

Commentaries & Views

  1. Some analysts claim the US dollar "looks strong" and could be set for a "big rally".  Is there merit in this thinking? 

  2. For some insight into the matter. Double-click to enlarge this long-term dollar index chart.  Dollar bugs may sound enthusiastic, but the dollar's performance on this long-term fiat versus fiat chart is quite frankly… pathetic.

  3. Over the past 50 years or so, the dollar has made no sustained gains against the other major fiat currencies of the world.

  4. The other fiats have also done little or nothing versus the dollar.  The bottom line: 

  5. Watching the dollar, the euro, and other government fiat currencies in action is like watching wet paint that never dries.  

  6. Double-click to enlarge this horrifying dollar versus bitcoin chart.  Government money enthusiasts may get an "A" grade for effort, but it's clear they get a "Z" for performance.  Why is that?

  7. Well, the "pillars" of government money are unlimited supply, debt, extortion, and propaganda.  The failure of these pillars is obvious on any government money versus private money chart.

  8. Double-click to enlarge.  On this dollar versus "ultimate money" gold chart, there's a huge bear flag in play, with ominous implications for all fiat currencies.

  9. While Jay Powell promises that inflation will be as transitory as his stock trades, more and more heavyweight business owners have concerns, and in the case of some… these concerns are enormous.

  10. Infighting amongst democrat party members has begun, and it looks set to intensify if the ramp-up in prices does not stop soon.

  11. The inflation numbers in reports issued by the US government are beginning to look ridiculous, especially when compared to the "boots on the ground" experiences of regular citizens.

  12. Investor tactics?  Double-click to enlarge this spectacular GOAU ETF weekly chart.  For hardcore investors who are heavily invested, the best tactic may be to simply pour a glass of fine wine or mineral water… then sit back and enjoy the show! 

  13. Note the bull wedge I've annotated on the GOAU chart with dotted blue trendlines.

  14. I've issued a significant buy alert for GOAU, based largely on the scenario of gold bullion making an enormous right shoulder low on the weekly chart. 

  15. On that note.Double-click to enlarge this incredible long-term gold bullion chart.  Gold looks ready to begin a charge to the $2000 neckline area, enroute to the $3000 target zone!

  16. Fundamentals?  Indian demand is growing steadily again, Chinese demand is decent, and Western inflation concerns are rising rapidly.  The bottom line:

  17. All lights are green, for right shoulder blast off.

  18. Double-click to enlarge this daily GOAU chart.  The current minor trend rally is incredibly strong and looks set to extend to the $20 area, and here's the great news:

  19. This price action is perfectly in sync with the action on the weekly gold bullion and GOAU charts.

  20. The fiat bonfire and gold/silver price surge is going to be exciting and profitable for both junior and senior mining stock enthusiasts. 

  21. Double-click to enlarge this daily GOAU versus Dow chart.  There's a trend channel breakout in play and a large inverse H&S bottom pattern may be forming as well.

  22. I've suggested that America is at a time like the year 1966, when the stock market entered a kind of financial gulag, and the miners went ballistic for a decade. 

  23. India may be at a time like 1880s America, and the citizens there are even more gold-oriented than America was then, with an exponentially larger population. 

  24. As noted, the main tactic for gold bugs now is to simply be seated with a smile… and get ready to enjoy what promises to be a very inflationary rocket ride!

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.