Bob Hoye, master economic historian joined us to discuss the appreciating dollar, declining precious metals prices and the addition of the Yuan to the IMF’s SDR (special drawing rights). Bob predicted long ago that the world reserve currency, the USD, would hold up well during this credit bust. He’s tracked the performance of every reserve currency for hundreds of years to understand how they behave in similar circumstances. The Dollar is behaving exactly the same way. Bob thinks that it might be time for a pull back and that gold stocks and shares could be the beneficiary. Also, he’s not making any bets on the Yuan becoming the new reserve currency anytime soon.
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