Euro and €-Gold
Updated September 23, 2023: Bull Run and Historic Record...up to € 2,130!
European Authorities can now LEGALLY steal bank deposits and block the withdrawal of smaller amounts. Because of the Bail-In legislation, any depositor has become a creditor! Hence, the € 100,000 guarantee/insurance is a worthless JOKE.
|€ - Gold||All-time high
||€ - Gold-month|
|Bullish Target||€ 2180
|Bearish Objective||€ 1720|
|Technical pattern||Bull Run
"We started to advise to buy Gold in 2001/2002"
The Euro-Dollar: The secular trend of the Euro is up, and the Dollar is down.
Note the Bullish Low-Pole Reversal in November 2022!
- The Euro is not like the dollar in the least. Each country retained its identity but abandoned its currency without realizing they were, in fact, surrendering economic sovereignty. Capital is by buying German debt in the Euro, forcing the Euro higher while, in fact, making repayment for the weaker countries (FPIIGS) even worse. Instead of lessening the debt, it is, in fact, appreciating at a time when the economy of the EU is declining. In other words, a story with a bad ending.
- The demise of the euro and the return of national currencies will allow for the proper allocation of investments and resources. It is the best thing that could happen to the markets.
- The Euro-Dollar exchange rate is like the Devil dancing in holy water...During the process, a LOWER gold price can be overcome by a CRASHING Euro. This is a normal phenomenon during a DELEVERAGING process.
The single currency functions so brilliantly that its vulnerable members (Greece, Italy, Ireland, Portugal, Spain) are sliding toward bankruptcy. There is no way the Euro and the EU (a complex society) will survive expensive energy!
- The ECB and IMF have BROKEN the back of the Euro Camel...You have to be out of your mind to stay invested in euros after what happened in Cyprus and what is happening in Greece. Remarkable is that the Euro remains so strong versus the US-Dollar...or does this happen because the US-Dollar is in more trouble than the Euro!?
- The European Central Bank put a floor under the eurozone by agreeing last month to buy unlimited quantities of bonds of any troubled member state that accepts the conditions of a bailout program. ECB President Mario Draghi made clear the bank will use all its tools to defeat anyone betting on a break-up of the monetary union.
- Remember, this is a CURRENCY WAR...and a synthetic Dollar Shortage (see Dollar Fundamentals), which an actual war could follow. The Cyprus holdup was a test case, and a similar happening can be seen in Europe (Greece?!) any day now... Also, one may NOT forget that the Middle East War and the inflow of refugees in Europe are part of the BIG picture.
- The ECB doesn't have the flexibility the FED (Federal Reserve) has. However, to bail out Greece, Portugal, Italy, the EU, AND its Banks, they use exponential amounts of Fiat Money armed with DERIVATES and Credit Default Swaps. Those guys have lost any common sense. SWAPS and DERIVATIVES work in the short run, making the Global Financial System even more explosive.
- Europe and the Euro are BANKRUPT, and now it's just guessing when the final act (the Black Swan) will land. DO NOT DELAY action... and be advised the authorities will take all they can on their path to death. Having said this, the Media/Press has never forecasted a Major Crash. On the contrary, they are excellent contrary indicators! Before the END GAME breaks lose, expect to see the Authorities do ANYTHING to let the Euro (and Greece, Portugal...) survive. The fact that Germany, Poland, and soon Switzerland are repatriating their national Gold holdings may indicate that we may see severe problems with the US dollar first. Very hard to write a scenario. As things look now (June 2015), the Euro may encounter problems first. The endgame, however, has still not been played yet...everything is possible!
- Why would one hold Fiat dollars and/or Euro? The Nominal Yield is almost zero and lower than the official inflation rate, and the Stock Market is collapsing….Real Estate is collapsing…The Banking system is in trouble...The bulk of derivatives is labeled in Dollars... imagine what can happen if the Chinese stop buying dollars...and this is exactly what they are doing. Check our investment table for the Fiat currencies we think are far better...more.
- The Euro is just like the Dollar FIAT PAPER MONEY worth ZERO. However, it takes time before the Herd stops believing the Propaganda and static delivered by the Talking Heads and Authorities and becomes aware of this vast Ponzi scheme [Madoff was jailed for what they are doing]. Remember, Fiat paper money is not only paper but also DEBT. By holding on to it, you hold on to somebody else's DEBT...The Euro is a complex fiat currency resulting from a complex society (the EU) controlled by the ECB. According to Tainter, it will not survive the rising cost of energy. The Canadian and Australian dollars are stronger than the Fiat currencies (compared to the US dollar). Knowing that A LOT MORE DOLLARS can be sold (because there are more Dollars in circulation) than Euro is essential.
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