The thing you got to understand about Europe is that in August they go on holiday. They used to all go to Greece although recently it’s only the Brits who go there on account of the demonstrators draping Swastikas over the Acropolis; in 2011 the real action was France and this year the German Invasion was intense.

The only people left are the janitors and junior bankers…and the gangs from the Banlieue staying up all night in Lyon and Paris, burning cars. But the bosses and the EU-Trash-Bureaucrats on indexed liked pensions all have August engraved on their calendar, its part of the dual-speed “social contract” they are so proud of.

And look what happened to Gold:

According to the “General Theory”…BubbleOmics not Relativity or Keynes’s effort, the “fundamental” in a bubble/bust cycle is roughly defined by the square root of the top multiplied by the bottom assuming the fundamental doesn’t change much in the interim; which put the fundamental price of dollars expressed in “real money” at about $1725 in mid-September.

If that’s right then what’s driving the price may indeed be the level of US Treasuries outstanding.

http://www.marketoracle.co.uk/Article31088.html

And $1,800 here we come!!

Twenty years doing market analysis and valuations for investors in the Middle East, USA, and Europe; currently writing a book about BubbleOmics. Andrew Butter is managing partner of ABMC, an investment advisory firm, based in Dubai ( hbutter@eim.ae ), that he setup in 1999, and is has been involved advising on large scale real estate investments, mainly in Dubai.

© 2011 Copyright Andrew Butter- All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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