Trend Lines

One of the most important sources in making an accurate analysis within financial markets, is data comprised of trend lines. These graphs chart in detail past and present corrections within markets worldwide, they can give an investor better insight into an extremely important decision making process. One of the most alarming trend lines is the gradual yet consistent depreciation of the American dollar. Over the last decade the dollar has declined 25% and gold has appreciated over 400%. This fact is so important for most Americans because a disproportionate amount of there retirement income is tied to paper assets, most have only a small portion of there portfolios in gold and silver. If this trend continues one could reasonably anticipate a strong acceleration in decline due to our governments quantitative easing policy of late. Any time you have governments printing money, debasing is the net effect. One could assume that the dollar will lose an additional 25% of its value in the next 5-10 years, ad in taxes as boomers retire and begin collecting, and you have massive wealth evaporation. China and other countries are presently stockpiling vast amounts of gold in anticipation of such trends. This will only get worse as the American dollar is replaced as the worlds reserve currency.