Sick of all the rhetoric from hot air politicians about speculators being to blame for high commodity prices?
In the category of “everything in the United States is illegal unless you pay a tax or you are the government”, this week we had “Dubya”, Secretary Paulson and “Helo” Ben all trying to talk up the U.S. Dollar.
Did it work? You bet. Dollar up, commodities down. Did that make money for some while causing others a bundle? Absolutely. Who knows, maybe Hillary was short gold (black gold and the regular stuff) and long U.S. Dollar.
But talk is only talk. Congress isn’t reigning in spending or suspending the printing (physical or electronic) of more increasingly worthless fiat money. Fundamentals can only be overcome in the short run. Sometimes the very short run. Don’t get me wrong, you don’t want to fight the government – unless you are George Soros at least. He proved a few years ago that the currency markets were more powerful than any government; and made a couple billion in the process.
A lot of people, myself included, are actually hoping for some gold and silver weakness during the summer “shopping season”. That’s the time to restock the portfolio and buy Christmas gifts on the cheap.
Be careful though; sometimes you get what you wish for and get it good.
In the meantime I will continue to avoid politicians and keep on the look out for gold, silver and related mining companies on sale at great prices.
