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FreeMarkets (41.72)

Dollar No Longer a Safe Haven



February 22, 2011 – Comments (3)

Something really interesting happened during todays premarket trading. While the price of gold is up 0.7% to $1398.30 per ounce, and silver is up a much sharper 3.0% to $33.26 per ounce, the dollar, is currently flat against a basket of competing currencies.

During any type of serious crisis, the dollar always rallied, but today it is not.  I am marking February 22 on my calendar for this may be the day that future economists mark as the beginning of the long death of the dollar.

3 Comments – Post Your Own

#1) On February 22, 2011 at 10:03 AM, ETFsRule (< 20) wrote:

Treasurys gain as Libya violence sparks buying

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#2) On February 22, 2011 at 10:11 AM, FreeMarkets (41.72) wrote:

I saw that, but that is based on interest (not like the Japanese are paying more on their Treasurys).  It's the dollar lack of a rally that has me concerned.  In all previous conflicts it has gone higher.

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#3) On February 22, 2011 at 3:56 PM, rfaramir (28.63) wrote:

Not that I really disagree, but...

How can staying flat with other currencies be the beginning of a death? Perhaps the end of its special reserve-currency status, which is bad news for us in one sense. And that might be the first step in its death, but it might (theoretically) be the only step it takes, down to equal to other fiats.

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