Why the gold and silver are acting as the new vehicle "flight to safety".

Sentiment on the dollar is in the tank - and we have a fairly decent crisis on our hands in the Middle East.

Therefore, one would think with all the bad news priced already in the buck this agitation would be sufficient to send the dollar higher sprint.

Good guess... but so far, wrong!

Bad news for the buck? It is actually sold since the beginning of the crisis Mideast (latest). (Source: StockCharts.com)King Dollar is no longer a destination "flight to safety"?  Steve Sjuggerud explores in DailyWealth of today:

in this crisis, instead to flee to the safety of $, investors pushed the price of gold and silver has soared.

Are gold and silver the new sanctuary for the money? Since tens of years which has been the case. But it may be the case now.

Another explanation here is that the Tunisia, Egypt, and the Libya are in the world of high finance... They do not count enough to move the needle of the Big Money. They do not count enough to send Big money scurrying for safety.

That may seem harsh. But when it comes to global economic growth, these three countries are barely a rounding error...

We will put into perspective... When Europe's banking system is crashing, money rushes to the dollar. But when the Libya collapses, it is fundamentally irrelevant... Active money Big in London and New York are not affected, and this is what worries lots of money.

So which is? Why the dollar is weakening in this crisis? Is it because the Big money has chosen gold and silver? Or is it because the money is not rush to safety - yet - this crisis?

Personally, I think what is the latter… Money is not lose sleep on the Libya... but yet to buys precious metals, masterly way.

Source: DailyWealth

And discover the action of the price of gold and silver of the end - each bounced sooner, faster and faster than even the most ardent recent withdrawal of precious metals bull had predicted:
"one way" to go long silver and gold trades continue!Perhaps it is different this time - er, maybe it is not, 2008, at least.  Gold and silver continue to shine, while most of the other assets start to show some cracks in the armor.But don't forget that last gold peaked in March 2008 - several months after stocks began their epic free fall.  Precious metals could be once more the last bastions of this rally-, but the fact that these are "higher" 2008 (and summits without precedent in the case of gold) would be the bullish profane appear to be solid.

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