Falling Canadian Dollar, Peaking Stocks, Bonds & Imminent N.A.U. Suggest the Wisdom of Gold
by Jan Allen. December 13, 2006
Summary
A falling Canadian Dollar when coupled with the peaking of the Canadian stocks and bonds and the imminent coming of a North American Union in a 'continental response' to both economic events and North American emergencies strongly suggests the wisdom of investing in gold.
The loonie has taken a tumble
Dudley Baker writes a superb article entitled What's Up (rather down) with the Canadian Dollar? and comments: "All of us as investors in the natural resource sector would like to see the Canadian Dollar remain strong if only because so many of our investment dollars are denominated in the loonie. Unfortunately, what we need and what we want is not what we always get. We shall see. While it will not be the end of the world to investors if the loonie does not substantially rebound, it will have the effect of limiting our future gains from our investments in the mining stocks, long-term warrants and other investments.
Canadian stocks and bonds have peaked out
Resource stocks are at support as is seen in the Jack Chan's Charts of S&P/TSE Canadian Energy iUnits at 83.90 and S&P/TSE Canadian Gold iUnits at 81.94
The chart of ETF (EWC) Canda iShares shows a bearish dark cloud covering on December 4, 2006 where it topped out at 26.06.
The chart of XBB.TO iUnits Canadian Bond Broad Market Index Fund is terrifically bearish (it is one likely to go into the economic textbooks): it manifested a Dragon Fly Doji on December 5th; a Parabolic SAR Sell Signal on December 8th; a Hanging Man on December 12th, and was trading down intraday on December 13th.
A North American Union is imminent
The Cancun Summit mandated the North American Union by 2007.
Furthermore, a N.A.U. is implied in the comments of Canadian Prime Minister Stephen Harper in a Speech to the Economic Club of New York 9-20-2006 where he spoke of a 'continental response' to challenges rising from China and India and an enlarged European Union.
An investment demand for gold has arisen
In mid October an investment demand for gold arose; this demand will become increasingly more strong, sending gold prices soaring.
Recommended Action
I am not a financial advisor and do not offer any advice for financial reward; nevertheless, I recommend that one invest in gold at BullionVault.com.
Suggested Reading
© 2006 Jan Allen
Contact Information
Jan Allen | Prospering Bear Blog | Seattle, WA USA | prosperingbear [at] yahoo.com
