Tuesday, March 04, 2008

Every Cloud Has A Golden Lining

(I recently spoke on the phone with my dad. He seemed very happy and nearly manic over the failing economy. He was awarded tens of thousands of dollars through some old class action claim against his company. He found something fun to do with the money.)

Me: Hey dad how're you doing?

Dad: Couldn't be better honey, couldn't be better. Ha-ha! I'm like Ebeneezer Scrooge over here, countin' all my gold coins and puttin' them in piles.

Me: What? I know you were talking about buying some gold, but...where did you get it? You didn't get it from that infomercial with the woman who talks like she's hosting Masterpeice Theatre did you?

Dad: No honey, it's perfectly legit. I went to the local coin exchange center. You know, the worse the economy gets, the better it is for the gold standard...(goes into rant I've heard twice before)...

Me: So basically you're banking on a weak dollar. You're investing in the collapse of the U.S. economy?

Dad: You betcha!

Me: Are you going to buy me a magic beanstalk with those coins?

Dad: Possible honey, if the value keeps going up.

Apparently it is, according to Thomson Financial:

The raft of bad data from the world's largest economy briefly
pushed the dollar to a new all-time low against the euro, and oil prices to rise
above 103 usd.
Gold benefits from a weak dollar as bullion is seen as an
alternative asset. And with inflation fears rising due to record high oil
prices, gold also benefits from its safe-haven status, as it is bought to hedge
against oil-led inflation.
Barclays (NYSE:BCS) Capital analyst Suki Cooper
said that, with more negative data expected out of the US this week, gold prices
could rise even further if the dollar consequently weakens even more

No comments: