So at the end of the day the higher Dollar will likely contribute to a further erosion of the precious metals. I’ll leave you with this. For much of the crisis the stock market went in the opposite direction of the US Dollar. In May 2011 the stock market peaked while the Dollar bottomed. Today we are looking at an equity market as well as a US Dollar hitting new relative highs. We haven’t seen that in a long time. If it so happens the Dollar breaks thru while the stock market doesn’t reverse course it would be the first time in a long time the US economy would be creating wealth with an increasing stock market accompanied by a currency that is becoming more valuable. It’s certainly not a given that will happen. The Dollar is looking at stiff overhead resistance.
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