Dollar is down 40% against euro since five years

gold-eagle.com

Dollar is down 40% against euro since five years

Mon Apr 17, 2006 02:43

Dollar is down 40% against euro since five years

Gold-Eagle, 04/17/06
http://www.gold-eagle.com/dmr1.php

Mumbai-INDIA, April 16: Gold is expected to touch Rs 10,000 per 10 grams in the next five to six months because of the weakening of the dollar as the US economy is fast losing its sheen coupled with the constantly growing gold demand for the yellow metal.

These findings are contained in a paper brought out by Assocham on "Yellow metal: its future pricing trends", which points out that the dollar has already lost its lustre by 40 per cent against the euro since 2001.

"The trend is unlikely to be reversed in the future as the faith of the international community in the US economy has been shaken so much that it has reached saturation point. The US economy has started sagging and the trend has become so pronounced and visible that investors henceforth prefer to accumulate gold rather than dollar," says the study.

The paper also highlights that in last five years in the US economy, three lakh jobs have been lost in its manufacturing sector alone. This is an indicator also of the US dollar losing its pre-eminent position of most preferred investment instrument.

The report says further that gold demand the world over is constantly shooting up and has neared levels around 4,000 tonnes per annum against its supplies which remain stagnant at about 2,250 tonnes per annum.

Since the dollar is losing its glitter the emerging trend among the investing communities would be "to develop and widen the yawning gap for yellow metal accumulation which will naturally accelerate it price".

Assocham president Anil Agarwal said that the chamber estimates that the gold price by October 2006 are likely to be within the range of Rs 10,000 per 10 gms and would even exceed Rs 13,000 per 10 gms subsequently in the times to come.

The gap will also widen as no significant discoveries in major gold producing countries have been found. Gold refining across the world are running zero hedge positions.
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What The Collapse of The US Dollar Will Mean to The World |

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THE REAL REASON WE ARE AT WAR!
Description: The Dollar vs The Euro,Iraq Weapons
http://www.apfn.org/apfn/iraq_reason.htm

WAR IS A RACKET
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http://www.apfn.org/apfn/iraq_racket.htm

Wake Up America - The Federal Reserve System
#1 http://www.apfn.net/audio/L003I060312114818-fed-reserve1.MP3 (5.16MB) 22Min 33 Sec

#2 http://www.apfn.net/audio/L004I060312121819-fed-reserve2.MP3 (5.97MB) 26Min 6 Sec

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TIME MAGAZINE NOVEMBER 13, 2000 - Page 34
FOREIGN EXCHANGE

SADDAM TURNS HIS BACK ON GREENBACKS

Europe's dream of promoting the euro as a competitor
to the U.S. dollar may get a boost from SADDAM HUSSEIN.
Iraq says that from now on, it wants payments for its
oil in euros, despite the fact that the battered
European currency unit, which use to be worth quite
a bit more than $1, has dropped to about 82 cents.
Iraq says it will no longer accept dollars for oil
because it does not want to deal "in currency of the
enemy."

The switch to euros would cost the U.N. a small
fortune in accounting paperwork changes. It would also
reduce the interest earnings and reparations payments
that Iraq is making for damage it caused during the Gulf War,
a shortfall the Iraqis would have to make up.

The move hurts Iraq, the U.N. and the countries receiving
reparations. So why is Saddam doing it? Diplomatic
sources say switching to the euro will favor European
suppliers over U.S. ones in competing for Iraqi contracts,
and the p.r. boost that Baghdad would probably get in
Europe would be another plus.

-By William Dowell/ New York City

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Saddam Turns His Back on Greenbacks
By WILLIAM DOWELL/NEW YORK CITY
http://www.time.com/time/archive/preview/0,10987,998512,00.html

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ATrueWord.com
info@atrueword.com
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The Iranian Threat: The Bomb or the Euro? —By Dr. Elias Akleh, Mon Apr 17 02:51