Gold dropped below $850 an ounce last week - representing a decline of more than $182 an ounce, or nearly 17%, from the yellow metal’s March 17 record of $1,032.
The main culprit: The resurgent U.S. dollar. Since mid-to-late April, the U.S. greenback has gained ground against several major currencies, such as the European euro, the Japanese yen, the British pound, the Swiss franc and the Canadian dollar. And that rally could continue, especially now that the U.S. Federal Reserve has all-but-promised to end the ambitious rate-cutting campaign that it’s been operating since mid-September.
Trust me when I say the US dollar is toast. It may hold up for the very short term (2-6 months), but long term its done. Too many dollars floating about and worse yet, the priniting press keeps working on overdrive. Gold is still a solid investment and you want to be positioned with a company in a mining friendly environment with proven gold reserves. I choose NSM.
