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« 25 Signs that the Financial World is about to Panic | Main | The Silver Tide is about to Rise »

The USD is being propped up by the dismal display of the other currencies

usd chart 30 aug 2011.JPG

If there was a currency out there that showed a modicum of strength the US Dollar would be dead and buried by now. However, the race to be weakest currency continues based on the concept that a weaker currency will boost exports. Fat chance


This policy is not working for any of the twenty five or so contestants in this race. The Swiss Franc maybe flavour of the month at the moment but its too small to accommodate everyone and the Swiss do take action to devalue their currency from time to time. So investors ask themselves why are they still in any currency where the stated aim and target is to become weaker? Hence the upward progress by both gold and silver. And as long as this race to the bottom continues the future of hard assets such as gold and silver looks bright. This is an opinion that we have held for many years now and it has rewarded us handsomely.

Taking a quick look at the above chart of the USD we can see that the cross of death still casts its shadow over the USD despite the occasional rally. The USD is trading between the '76' and '73' level, however, a drop below the '73' level would see holders having to re-think the wisdom of standing firm. Since June 2010 the dollar has lost around 15% of its value, whereas both gold and silver have performed like Gladiators.

Its not just the United States that is struggling at the moment, the Euro zone is also plagued with fiscal ineptitude that appears to be getting worse with every bail out that the eurocrats throw at the problem. Its rather odd to assume that debt can be eradicated with yet more debt, but that appears to be their policy. Again the result is good for silver and gold but disastrous for the nations concerned.

Just consider this snippet for a moment taken from an article on Forbes:

European banks have stockpiled US Dollars to mitigate the risk of a funding market-freeze and subsequent shortage of greenbacks, making them substantially more resilient than during the post-Lehman days of 2008. While big risks remain, especially when it comes to ratifying the EFSF and the second Greek bail-out, European banks appear to be shielded from the short-term funding freeze-cum free fall that put the global financial system on its knees a few years back.

Stockpiling dollars! Where would the dollar be without this sort of demand, its not that the Europeans want or like the dollar, its fear driven based on the view that they will need them shortly when the cat hits the fan and everyone is screaming for more money. We don't know how this reads for you but we find it a tad scarey. Maybe they know a lot more then we do about the true mess that they are in. The best they can hope for is to try and manage the bad news by allowing it to slowly become apparent. As if you didn't know already.

Our mantra remains the same: Stick to physical gold and silver, acquire a few good quality producers and utilize a well thought out options trading strategy to increase your leverage to this bull market.

Regarding We currently have six trades open, all showing a good paper profit, however, we do not update the charts until the trade is closed and the cash is back in our account.

For those subscribers who are too busy to trade their own accounts we are now able to offer an Autotrading program with our SK OptionTrader service, as we are pleased to announce that we have entered into a partnership with GlobalAutoTrading and also with eOptiontherefore auto trading is now available for SK OptionTrader signals

Our model portfolio is up 396.58% since inception

An annualized return of 119.04%%

Average return per trade of 42.21%

85 closed trades, 82 closed at a profit

Average trade open for 45.41 days

sk chart return on SK OptionTrader Model Port 22 aug 2011.JPG

The above progress chart shows our performance when profits are re-invested, however, to see exactly how it is going, please click this link.

So, the question is: Are you going to make the decision to join us today.

Stay on your toes and have a good one.

Got a comment then please add it to this article, all opinions are welcome and very much appreciated by both our readership and the team here.

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Reader Comments (1)

We'll see how shielded they are from a liquidity crisis.

My guess is that it's gonna take a lot more Euro bailout from the bernanke to keep that leaky ship afloat. Their Lehman moment is upon them.

"There are no markets anymore...just interventions" - Chris Powell

August 30, 2011 | Unregistered Commenterfallingman

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