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This is the Chart of the Year for Precious Metals Investors

January 5, 2015

    “Daily Investment Trends for the Savvy Investor”

    CHART OF THE YEAR: DOLLAR ON FIRE

    This is the Chart of the Year for Precious Metals Investors

    U.S. Dollar Nears New Resistance Level

    The rise of the U.S. dollar (USD) has been one of the most important financial stories of the year. This is especially true for precious metals investors who have watched the value of their holdings fall in 2014. A strong and rising USD Index now stands at its highest level since September 2003 and is putting major pressure on precious metals prices and other currencies, such as the Euro, which now sits near 9 year lows.

    However, the above chart shows that the rise of the USD Index is nearing potential areas of multi-year resistance. The first resistance level appears near $93.45. If the USD fails to rise above this level, it could spark a fall in the dollar and a corresponding rally in precious metals prices. I currently hold approximately 20% of my total assets in precious metals. I will continue adding to my position in this depressed environment but will limit my total exposure to precious metals to 25% of my assets.


    Investor Wire: Profiting From the Coming Paper Money Collapse

    – PIMCO continues to report excessive outflows after Bill Gross’ exit…

    – The number of small businesses owned by Americans under 30 has fallen to a 24 year-low

    – U.S. debt soars by $100 billion on last day of 2014, hits record $18.14 trillion…

    – U.S. ethanol producers are feeling the squeeze amid falling oil prices and rising corn prices…

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