posted on Sep, 6 2011 @ 10:05 AM
reply to post by marg6043
Historically the strength of the Dollar as the Reserve Currency is due to the US Military and OIL.
Gold and Silver have been kept artificially low over time by the US to bolster the Dollars image and value.
On the contrary...
Gold is the still the method of asset transfer amongst the world's central banks.
The worlds largest holder of Dollar reserve the Chinese, and the rest of the world, are buying GOLD hand over fist to bolster their Gold reserves.
As the Chinese have warned, that due to the lack of confidence in the Dollar as a Reserve Currency primarily due to fiscal irresponsibility by the US
Govt.and subsequent world wide inflation.
Govts around the world are returning to the stability of Gold.
Global pension funds with assets @ twice the US's annual GDP, are currently only a fraction of a percent invested in Gold. When they begin to invest
in Gold due to the collapsing/weak performing US stock market, Gold and Silver will only continue to rise, at even a quicker pace.
This trend is NOT going to change anytime soon. Corrections in price will always exist in any market as long as there exist buyers and sellers.
Plain and Simple