It’s been a wild week: gold and silver are both up, but the US Dollar staged a late-week rally. Does this mean the dollar is back on track?
Eric Sprott says, “Not so fast.”
“For all Americans, they’re losing purchasing power on an international basis. Your Nissan is going to be 20% more expensive, other things being equal. The cost of any imports—it doesn’t matter what it is—the dollar has less purchasing power, so it’s a very, very significant thing…”
Add to that a bear market for bonds and a weak Fourth Quarter GDP, and the pressure on the dollar keeps mounting.
“We’re getting lots of indications that things aren’t as strong as they should be. Most of the ISMs have been weak. The Fed surveys have been weak. Retail sales were weak in December… There’s lots of talk of a boom, but I’m not so sure there is a boom. The data doesn’t support it.”
