Long Gold, Long the Dollar

Surely not! Buying Gold AND buying the US Dollar...?! In THE LATEST ISSUE of
True Wealth , one of my recommendations was to BUY the US Dollar, writes Dr.
Steve Sjuggerud in his Daily Wealth email. The Dollar now is a simple story.
It's cheap, hated, and we have the start of an uptrend... It's what we look for
in True Wealth , so we're buying. But paid-up subscriber Jeff called me out on
it. In an e-mail, he said: "Isn't it highly likely that if the Dollar rises and
the Euro declines, that silver and gold will decline?" Great question, Jeff!
I've probably had more subscribers cancel over this idea ( Buying Gold AND
buying the Dollar) than anything else in the history of True Wealth . Why? They
call me crazy. They say, "You can't bet on a rise in both gold AND the Dollar.
When one goes up, the other goes down." That's right...in theory. But
occasionally, theory and practice differ. We've successfully capitalized on this
numerous times in True Wealth . The last two times were: In 2005 (starting in
the December 2004 issue); In the first half of 2010 (starting in the December
2009 issue). Both times, the Dollar went up (the Euro went down), as predicted.
And both times, gold went up, too. It looks like it's happening again. Just
yesterday, the Dollar was up (the Euro was down) and gold was...up! Readers tell
me it can't happen. But it does. And we've made money on it. We're going to
again. As I said, the dollar is cheap, hated, and now in an uptrend. My friend
Jason Goepfert does a fantastic job of tracking investor sentiment at
www.SentimenTrader.com. His charts clearly shows investors are bearish on the
dollar... the most bearish they've been this year. You can also see the Dollar
has started an uptrend, from 76 to 79 on the trade-weighted foreign currency
index. Will it hold? I don't know. But this chart shows the Dollar is hated, and
it shows the start of an uptrend. What about cheap? From firsthand experience
last week, I know the Dollar is cheap. Last week, I was in Europe. The Dollar
was so cheap, it was near worthless. Here are some actual prices we paid: $90
for pizza and Cokes for four at a small-town pizzeria...$20 for a cheeseburger
at a diner...$6 for a soda. (I loved the trip...but I was glad to get back
home!) The Dollar rose in 2005...and so did Gold Prices , The Dollar rose in the
first half of 2010...and so did gold. So can both gold and the dollar rise in
the first half of 2011? Yes. Want to get physical? Buy Gold live online at
BullionVault today...