Will the US dollar continue the weakness that has been the trend over the last several years?
And what will the price of gold and silver do if the downtrend in the reserve currency of the world continues?
Japan is intent on the devaluation of THEIR currency. It seems that the US Federal Reserve is intent on the same thing. Japan got the short end of the stick over the last two decades as the rest of asia devalued and took marketshare from Japan. Ditto for this sleeping country. (U.S.)
Now we seem to be in the currency war. The race to the bottom is underway in earnest. What will happen to the fiat currencies? Is there an "adult" in the world to oversee the relative value of each currency. Where is the bond market? Answer: it has been taken over by the same central banks!
No one is driving the bus.....
I get the feeling we are on the cusp of a good old fashioned inflationary rally in commodities and PM's.
Wishful thinking? Maybe. Timing is everything. It is not a question of IF, but WHEN....
The chart of UUP, the US dollar index shows a very long term downtrend. It also shows a proclivity for rounding tops. We appear to be in a rounding top now. It remains to be seen if the long term downtrend continues.