Skip to main content

During this deleveraging and liquidation period, USD is only a proxy for assets, used and dump. Today it seems gold is moving by it's own power. When people see this kind of spike for gold (not stocks), I expect it will go much higher because people would rush to safe heaven rather than investment (sheep-goat effect). &We shouldn't use the same analysis for stocks to apply on an different animal. IMHO the winner at the end should be gold, maybe it will lost many battles in between, but it will be the only one standing at the end.  I won't bother to consider the USD risk because this time DOW has been cut in half and I don't think the liquidation would drive USD to the same height as last year unless this time we see a bond crash. But this will fuel up gold as well because it's the last resort.