[ed note: New readers may not know Myron Martin, who wrote a column mostly about junior miners for our readers in 2013 and 2014. He’s hoping to get back to writing more for us now, and this is his first piece in about a year for the Irregulars. As with all our guest columnists, he has agreed to our trading restrictions and he chooses his own topics — his ideas and thoughts are his own, we’ve provided only a little light copy-editing for clarity. Myron is Canadian, and most of the prices and dollar amounts cited are in Canadian dollars unless otherwise noted.]
This essay from Pinnacle Digest well defines my belief that the fate of the U.S. dollar is KEY to investment success for the average retail investor.
The currently strong U.S. dollar has obscured the fact that in spite of establishment stories planted in the popular media, the U.S. economy has not experienced a substantial recovery that has bolstered the average worker’s income. The strength of the U.S. dollar is tenuous at best, only because it offers the “best of a bad lot” in terms of fiat currencies. The problems in Greece and other weak European economies like Spain, Portugal, and increasingly France and Italy, to say nothing of Japans economic plight and weak yen, makes the American dollar look like a safe haven in comparison.
What few investors comprehend is that people who have invested in precious metals in countries with weaker currencies have done very well. It is only because the price of precious metals is measured in U.S. dollars that people have the perception that precious metals are going nowhere! It is only a matter of time before that misperception is shattered by an explosion in precious metals prices as the value of the U.S. dollar declines to its true purchasing power from the bloated lofty position it now has due to problems in the rest of the world. “When the chickens come home to roost” the purchasing power of the only “real money” (precious metals) will skyrocket as the masses come to realize how hidden inflation has destroyed the value of their various currencies.
To counter that reality the “establishment” is desperately trying to convince the masses that the U.S. economy is in recovery mode, using distorted statistics, fear mongering that gold prices are heading below $1000, maybe even as low as $700 according to Harry ...
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