Greetings!, As we enter this new trading week we see a continuation of bearish pressure on the precious metals markets. With both gold and silver down in double digits today, it is the strength of the dollar that has been a predominant factor in this bearish correction. As long as the dollar continues to strengthen precious metals will have an arduous uphill battle to gain in price.Greek citizens will now return to the ballot box. Whether Greece will remain within the E.U. is now a completely legitimate question. The bottom line question is "Can the conditions set forth in their bailout agreements can be met?" This contingency I believe at this point to be set in stone, and Greece cannot remain in the E.U. without complete compliance. Yet it is in no position to comply given its internal political pressures. And, if Greece is drummed out of the monetary union, the drachma will be the most feeble currency in the developed world.
I seriously question if Greece has the long term prospects economically to not just live up to the stipulations but to grow their economy properly. My take is that Greece has no real future unless it drags itself into the modern world. A good model for Greece is Israel, a country similarly without natural resources, somewhat isolated, and formerly struggling to cope in the contemporary global marketplace. Israel is now one of the two or three top economies in the world when one measures diversification.
The euro has been plummeting as the U.S. dollar has been rising against it. The euro is now at a four-month low with European equities under intense pressure. It is quite possible that we will see the common currency continue to fall and could even trade at par with the US dollar sooner than later.
As always, wishing you good trading, Executive Producer |
