{"id":851,"date":"2011-05-03T20:10:46","date_gmt":"2011-05-03T20:10:46","guid":{"rendered":"http:\/\/www.itmtrading.com\/blog\/?p=851"},"modified":"2011-05-03T20:10:46","modified_gmt":"2011-05-03T20:10:46","slug":"not-much-talk-about-the-dollar-approaching-an-all-time-low","status":"publish","type":"post","link":"https:\/\/www.itmtrading.com\/blog\/not-much-talk-about-the-dollar-approaching-an-all-time-low\/","title":{"rendered":"Not Much Talk about the Dollar Approaching an All-Time Low"},"content":{"rendered":"

It seems wild to me that the dollar is approaching its all-time closing low of 71.33 and there is virtually no talk of it anywhere.\u00c2\u00a0 It makes me think that the same will be the case even after the dollar breaks below the 71.33 figure.\u00c2\u00a0 Should the dollar break below 71.33 it will be in uncharted territory, meaning that there is no telling where it will end up.\u00c2\u00a0 Some technical analysis can give indications but no one knows for sure.<\/p>\n

Today the US dollar index sits at 72.90, which is only 1.57 points away from the all-time low.\u00c2\u00a0 The US dollar index is comprised of a basket of 6 fiat (debt based) currencies which include: Euro 57.6%, Yen 13.6%, Pound 11.9%, Canadian Dollar 9.1%, Swedish Krona 4.2% and Swiss Franc 3.6%.\u00c2\u00a0 As other fiat currencies become stronger the dollar becomes weaker.<\/p>\n

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To only be 1.57 points away from the all-time low, you might expect to garner some attention, but I just don\u00e2\u20ac\u2122t think that anyone wants to draw peoples focus to the dollar.\u00c2\u00a0 It is just too scary to be so close to uncharted water, especially when all the government seems to be doing right now is devaluing the dollar through money printing.\u00c2\u00a0 So what can you do to protect yourself?<\/p>\n

The other way to value any currency is to do so against gold, the primary currency metal.
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Over the last ten years the dollar has gone from 110 to 72.9 which is a loss in value of over 33%.\u00c2\u00a0 Meanwhile gold has risen from $263.95 to $1,555.90 over the same time frame, which is a gain of over 489%.\u00c2\u00a0 Gold is an excellent hedge against a falling dollar.\u00c2\u00a0 If you look at the last 10 years, to cover a 33% loss in the dollar you would have needed to make 50% on your money just to break even.\u00c2\u00a0 Gold has cleared 489% thus far, a very adequate hedge.<\/p>\n

If you look at the DJIA over the same 10 year time span the Dow went from 10,876 to 12,803 (5\/2\/2001 to 5\/2\/2011), only a 17.72% gain.\u00c2\u00a0 Not even close to the 50% gain needed to cover the loss in the dollar.\u00c2\u00a0 Therefore if you were using the Dow to hedge the dollar you would be in losses.\u00c2\u00a0 A similar thing has happened with bonds. On 5-2-01 a 10 year bond paid a dividend yield of 5.3% now it pays a paltry 3.29%. At the same time, the cost of everything except real estate, has gone up (CPI chart below).<\/p>\n

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This is why gold is used for preserving purchasing power (chart Gold against stocks, bonds and cash).<\/p>\n

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\nIf you haven\u00e2\u20ac\u2122t considered gold up to this point, it makes sense to do so as we are getting close to the all-time low closing for the dollar.\u00c2\u00a0 To buy gold coins<\/a> call us at 888-696-4653.<\/p>\n","protected":false},"excerpt":{"rendered":"

It seems wild to me that the dollar is approaching its all-time closing low of 71.33 and there is virtually no […]<\/p>\n","protected":false},"author":6,"featured_media":859,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1207],"tags":[79,83,125],"class_list":["post-851","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-hedge","tag-inflation","tag-u-s-dollar"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts\/851","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/comments?post=851"}],"version-history":[{"count":0,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts\/851\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/media\/859"}],"wp:attachment":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/media?parent=851"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/categories?post=851"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/tags?post=851"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}