There’s been a change

Posted by Mark Leibovit

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A small excerpt from Mark Leibovit, author of the the tremendous 10 page VR Gold Letter. The VR Gold Letter is published WEEKLY. This excerpt from 8/09/09.

Gold is now heading into the positive season as seasonal demand from various holidays around the world bring jewelry production to the forefront.  With normal seasonal demand expected to pick up, the Fed’s decision to keep the petal to the metal with regard to their cheap money policy sows the seeds for a fall rally in gold.  

The Fed’s decision will make a rebound in the dollar that much more difficult for two main reasons.  First, the dollar will continue to be the borrowed (or shorted) currency in the carry trade.  Second, the Fed’s continued easy money policy will bring inflationary pressures to bear down the road as more liquidity is being pumped into a system that we are being told is recovering.  The Fed dare not turn off the spigot here as that would jeopardize this already fragile jobless, liquidity driven ‘recovery’.    

The point here is that if the economy does recover, all of the excess liquidity in the system will push inflationary forces higher, which will raise the appeal of gold as an inflation hedge.  If the economy does not recover, that means that the carry trade will be alive and well which will keep downward pressure on the dollar, and its debasement will continue while further putting its status as the world’s reserve currency in jeopardy.  

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The rally in the US Dollar led to a decline in the Canadian Dollar, which also fell against the Yen and Euro. FXC declined 0.84 to 90.78.

Overall, the Canadian Dollar should continue to be strong as the Canadian economy holds up better than most, their financial industry survives without the big losses we are seeing in the US and Europe, and strength in gold and oil, though a flight to safety could temporarily hurt the Loonie.

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The VR Gold Letter is available to Platinum subscribers for only an additional $20 per month, while for Silver subscribers the price is only an additional $70.00 per month. Prices are going up very shortl, so act now! Separately, the VR Gold Letter retails for $1500 a year! The VR Gold Letter is published WEEKLY. It is 10 to 16 pages jam-packed with commentary and charts. Please call or email us right away. Tel: 928-282-1275. Email: mark.vrtrader@gmail.com .

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Marks VRTrader Silver Newletter covers Stock, TSE Stocks, Bonds, Gold, Base Metals, Uranium, Oil and the US Dollar.

Mark was named the #1 Gold Timer for the one-year period ending March 25, 2008 by TIMER DIGEST.

More kudos – Mark Leibovit was named the #1 Intermediate Market Timer for the 10 year period ending in 2007; the #1 Intermediate Market Timer for the 3 year period ending in 2007; the #1 Intermediate Market Timer for the 8 year period ending in 2007; and the #8 Intermediate Market Timer for the 5 year period ending in 2007. NO OTHER ANALYST SURVEYED APPEARED IN ALL FOUR CATEGORIES FOR INTERMEDIATE MARKET TIMING AS PUBLISHED IN TIMER DIGEST JANUARY 28, 2008!
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