USD vs RealityAs gold continues to consolidate and build support on its longer term uptrend, you really have to give your head a shake at comments by some analysts who are predicting a stronger USD in the midst of overwhelming evidence to the contrary!
We are closing out a year when analysts have made predictions on just about every conceivable possibility yet common sense prevails. We here in Canada are clearly emerging from the recession (imposed on us) slowly but surely. The story in the States is far more grim due to the financial collapse which isn't over and in fact they are predicting more bank failures in the US for 2010 and reserves are already being set aside to try and stem that crunch coming. That alone is enough to spark a rally in gold!
The US administration is by far the most socialistic and troubling administration in a long time. The path they are leading Americans down is troubling as they are issuing cheques they are not going to be able to cash and in the process they are already at the point where they cannot pay for the debt they have created.. Let me repeat that - THEY CANNOT PAY FOR THE DEBT THEY HAVE ALREADY AMASSED .... in other words the USA is virtually bankrupt which is one reason why other countries are unloading the USD.
Given that reality how can these analysts claim that the USD is going to prevail? It simply cannot for the foreseeable future. I have no doubt the world will figure out some means to stave off the outright collapse of the USD including such things as a diabolical one world government which we are hearing more and more of which should get most thinking peoples attention.
The trend for gold and silver remains firmly in place and while we are seeing a temporary pullback, with the blessings of the FED, we can be sure that in 2010 we will see new highs for the price of gold.
Ecometals continues to be my favorite speculative gold stock with the potential to blow the doors off every other junior gold stock out there. Assuming EC proves up Rio Zarza two strong anomalies to contain millions of ounces of gold you have to know that the timing couldn't be any better with the rising price of gold. Should that happen and many expect it will then the values placed on EC shares will eclipse that of what ARU did when gold was only $600 an ounce! This is potentially huge for EC shareholders.