This quote comes from a Bloomberg article last week which reported that China and Russia will bypass the U.S. dollar and engage in trade with each other using yuan and rubles. This could start freely occurring sometime this month.
In the words of one analyst: “Given the risk to the dollar and U.S. assets from their fiscal position they want to reduce their dependence on the dollar as an invoicing currency...” Here's the link to the article: Dollar R.I.P?
Here's a chart of the U.S. Dollar thru today. It does not look good:
Demand for physical gold remains robust out of Asia and India ahead of Q4:10. Our Standard Bank Physical Gold Flow Index remains in positive territory indicating that buying in the physical market continues to outpace selling, even at this near-record high gold price.So there you have it. Many newsletters writers issued bearish short term trading calls this past weekend on gold based on the technical patterns of the charts. Absurdly, there are still a lot of lemmings who live and die by their favorite newsletter writer. Newsletter peddlers are usually wrong, by the way. It is with dry humor that JB's report today is titled: "NY Chart anxiety = Happy Indians."
My best advice would be to start unloading your bond portfolio holdings before the dollar really starts to flush down the toilet and use the proceeds to buy a lot more physical gold and silver. I would like to point out that premiums for 1 oz. silver eagles on Ebay are back over $3/oz. This is indicative of strong retail demand and waning supply.