Gold: Sale Ends Today!

DJ: Euro-Zone Retail Sales Post Record On Yr Drop
(DowJonesNewswires)
Euro-zone retail sales posted a record drop on the year in March, but the previous month's figures were revised significantly to show a rise rather than a fall, data released by European statistics agency Eurostat showed Wednesday.


Gold falls as US rises against euro
Gold fell for the first time in four sessions as the dollar rebounded against the euro. Silver also declined.

The dollar rose on speculation the Federal Reserve may raise interest rates to curb inflation. Gold has climbed 26% in the past year, reaching a record $US1033.90 an ounce on March 17, after sliding borrowing costs sent the dollar to an all-time low against the euro.

''We're headed toward the rehabilitation of the dollar,'' said Ron Goodis, a futures trading director at Equidex Brokerage in Closter, New Jersey. ''You give the perception that you're going to raise interest rates and that puts a floor under the dollar, and gold is going to go down.''
http://business.theage.com.au/gold-falls-as-us-rises-against-euro/20080508-2c40.html

LOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOL!!

There isn't a snowballs chance in Hell of the Fed raising interest rates. Period! Interest rates will reach ZERO before you'll see an interest rate increase by the Fed. And Gold will be substantially above $2000 if and when the Fed gets the opportunity to raise interest rates. That is if the Fed is still in existence. Rehabilitation of the Dollar? Not a freaking chance.

Look, this is sooooooooooooo simple. The Dollar was up today because the Euro was weak today. That is all there is to this story. Every ounce of hope pinned on this donkeys ass is based on a weaker Euro. The Euro was weaker today because retail sales in the Euro Zone came up a bit lame today. So the genius' that believe the ECB is the European version of the floundering US Fed assume that now they will cut rates in the Euro Zone to stimulate growth. They believe that because the Euro Zone inflation numbers last month were tame enough to give the ECB cover to cut interest rates...just like the pathetic US Fed would/does do. Ain't gonna happen.

The ECB's mandate is price stability...as in controlling inflation. The ECB understands that by cutting rates, they would only fan the flames of incendiary inflation and make their economy even worse as price rose higher and consumers spend even less. [Hey, just like is happening in the US.] European politicians have wised up to the scam that is the US Federal Reserve. They will not pander to them or anybody else. They understand that a strong Euro will, in the long run, insulate the Euro Zone, and limit the negative effects of US Dollar induced global inflation. High rates of interest in the Euro Zone will not "stop" inflation in the Euro Zone. But a strong currency in a world where commodities are priced in Dollars will go a long ways towards getting "more for your money." Because if you're an American, the crumbling US Dollar guarantees that you will "get less for your money". Why would the Europeans want to follow the Americans into Inflation Hell?

Here's the shakedown. Whether the "credit crisis" is or isn't over is irrelevant. Precious Metals and commodities went on a tear between August 2006 and March 2007 because the Dollar was getting crushed because of the "uncertainty" in the Global Financial System. Many believe that the "credit crisis" peaked with the bailout of Bear Stearns on March 17 by the Fed. That remains to be seen. We doubt that it has... Suffice it to say, this recent leg up in gold, almost $300, was the result of money moving to Gold because of its "safe haven status" in times of economic uncertainty. Gold is ALSO the defacto hedge against inflation. And the inflation train has left the station people. It's destination is unknown, but it is destined to tour the entire globe. What is known is that the throttle on this inflation train is stuck. And a stuck throttle means only one thing...rapid acceleration until the throttle gets unstuck, the train runs off the track, or the train hits a wall. We are certain of only one thing. The inflation train has a packed fuel cell...it won't be slowing down or stopping because it runs out of gas anytime in the near future.

The "sub-prime" mortgage meltdown, that has been the scapegoat for the past eight months of Global Financial Meltdown, could be thought of as and Economic Earthquake. The bigger the earthquake, the greater the potential for aftershocks. It's not unusual for aftershocks to be stronger than the initial shock. If you think this Global Financial Meltdown has come and gone, all the best to you in the future...good luck!

If you think there are aftershocks left to endure...Protect yourself, protect your future, protect your family from the ravages of inflation. Buy, Buy, Buy, Gold and Silver. Sale prices won't last much longer.