Some analysts claim the US dollar “looks strong” and could be set for a “big rally”. Is there merit in this thinking?  

For some insight into the matter,

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long-term dollar index char

. Dollar bugs may sound enthusiastic, but the dollar’s performance on this long-term fiat versus fiat chart is quite frankly… pathetic.

Over the past 50 years or so, the dollar has made no sustained gains against the other major fiat currencies of the world.

The other fiats have also done little or nothing versus the dollar. The bottom line:  

Watching the dollar, the euro, and other government fiat currencies in action is like watching wet paint that never dries.   

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horrifying dollar versus bitcoin chart

Government money enthusiasts may get an “A” grade for effort, but it’s clear they get a “Z” for performance. Why is that?

Well, the “pillars” of government money are unlimited supply, debt, extortion, and propaganda. The failure of these pillars is obvious on any government money versus private money chart.

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On this dollar versus “ultimate money” gold chart, there’s a huge bear flag in play, with ominous implications for all fiat currencies.

While Jay Powell promises that inflation will be as transitory as his stock trades, more and more heavyweight business owners have concerns, and in the case of some… these concerns are enormous.

Infighting amongst democrat party members has begun, and it looks set to intensify if the ramp-up in prices does not stop soon.

The inflation numbers in reports issued by the US government are beginning to look ridiculous, especially when compared to the “boots on the ground” experiences of regular citizens. 

Investor tactics?

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spectacular GOAU ETF weekly chart

For hardcore investors who are heavily invested, the best tactic may be to simply pour a glass of fine wine or mineral water… then sit back and enjoy the show!  

Note the bull wedge I’ve annotated on the GOAU chart with dotted blue trendlines.

I’ve issued a significant buy alert for GOAU, based largely on the scenario of gold bullion making an enormous right shoulder low on the weekly chart.  

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incredible long-term gold bullion chart

Gold looks ready to begin a charge to the $2000 neckline area, en route to the $3000 target zone!

Fundamentals? Indian demand is growing steadily again, Chinese demand is decent, and Western inflation concerns are rising rapidly. The bottom line:

All lights are green, for right shoulder blast off.

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daily GOAU chart

The current minor trend rally is incredibly strong and looks set to extend to the $20 area, and here’s the great news:

This price action is perfectly in sync with the action on the weekly gold bullion and GOAU charts. 

The fiat bonfire and gold/silver price surge is going to be exciting and profitable for both junior and senior mining stock enthusiasts.  

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daily GOAU versus Dow chart

There’s a trend channel breakout in play and a large inverse H&S bottom pattern may be forming as well.

I’ve suggested that America is at a time like the year 1966, when the stock market entered a kind of financial gulag, and the miners went ballistic for a decade.  

India may be at a time like 1880s America, and the citizens there are even more gold-oriented than America was then, with an exponentially larger population.  

As noted, the main tactic for gold bugs now is to simply be seated with a smile… and get ready to enjoy what promises to be a very inflationary rocket ride!