Gold and Uranium – A European Perspective

Last week was a very interesting one here in Ajijic, Mexico, land of tacos, tortillas and tequila. We had representatives of a private European bank here visiting current clients, making a presentation of their organization and recruiting new clients/investors for their bank.

Our village is always on their list of locations to visit because of the large numbers of Americans and Canadians living in this community. Most investors are advised of the need to get some monies outside the U.S. and Canada so this was a great opportunity to see what this European bank had to say.

The bank would give us U.S. and Canadian investors an ‘offshore’ bank thus transferring some funds outside the control of the U.S. and Canadian authorities. Investors are offered many advantages with this organization as we could do the following:

• Have our ‘dollars’ denominated in over 15 different currencies
• Make use of the Japanese Yen carry trade
• Invest in many of the popular mutual funds
• Buy stocks, futures and options on futures

This flexibility sounded great and the only downside was that all of our orders would have to be placed with a telephone call and not online. This could delay our trades for some of us and also here in the Central Time Zone we have a 7 hour difference meaning we may be placing orders at 1 or 2 in the morning.

Obviously, I have strayed from the title of this article but I wanted you to understand one of the reasons for me attending this investment presentation. The other reason for attending was to get their views on the U.S. Dollar, gold, mining stocks, uranium and uranium stocks from their European perspective. Not only did I attend their 2 hour presentation but I had the opportunity to spend a wonderful 3 hour Saturday afternoon with these representatives with great conversation and asking many questions on the following subjects:

• U.S. Dollar ---------- Basing their views of the U.S. dollar using technical analysis, they see the U.S. dollar climbing HIGHER in the coming days, weeks and perhaps months even though they agree from a fundamental view, the dollar should decline long term.

• Gold & Silver -- Gold and silver will continue up even with the rising U.S. dollar.

• World Liquidity ---- The massive liquidity in the world’s financial system will continue, probably driving the indices higher in most countries.

• Mining stocks ---- They currently have little or no knowledge thereof (leaving me almost speechless).

• Uranium & Uranium stocks —They currently have little or no knowledge of uranium or investing in the uranium shares and commented that “this seems very risky”.

source news : news.goldseek.com