Tuesday, September 29, 2009

Why People Are Buying Gold And Silver

From Wikipedia:
The US Dollar Index (USDX) is an index or measure of the value of the United States dollar relative to a basket of foreign currencies. It is a weighted geometric mean of the dollar's value compared to the euro (EUR), Japanese yen (JPY), Pound sterling (GBP), Canadian dollar (CAD), Swedish krona (SEK) and Swiss franc (CHF).

It was started in March 1973, soon after the dismantling of the Bretton Woods system. At that time, the value of the Dollar Index was 100.000 and has since traded as high as the mid-160s but also into the low 70s. As of October 2008, the USDX was trading in the mid-80s. On March 16, 2008, the index reached 70.698, the lowest since its inception in 1973.

The index is updated 24 hours a day, 7 days a week. It is listed on ICE Futures Exchange US (e.g., New York Board of Trade [NYBOT]).

As you can see, the US dollar has been in decline since March, and it doesn't look much like it's going to gain any footing anytime soon. In fact, because the dollar has been so weak there has been talk by some of a new world reserve currency to take its place, although the recent G20 meeting did not recommend this, mostly because they cannot agree on what currency would replace the US Dollar... yet. The World Bank already sees the dollar's role diminishing. Interestingly enough, the Chinese are buying up gold and silver like crazy.

Some say the dollar is being crashed on purpose to pave way for a new world currency along with the much talked about "New World Order". (buh-bye US sovereignty) But I digress....

The dollar isn't backed by anything - it's just printed up by the Federal Reserve. It used to be backed by gold. Now it's just paper.

And of course there is the push to audit the Federal Reserve because there are just some things going on with those private bankers who control our money (unconstitutionally, I might add) that need to be exposed.

Federal Reserve Bank Governor Kevin M. Warsh this past month even acknowledged that the Federal Reserve is concealing records of its gold swap arrangements with foreign banks.

So as the dollar weakens and job losses mount and the government continues on its spending spree ... it looks like the best place to be is in gold and silver, unless you like holding paper that just becomes worth less.

Just thought you might like to know.