With Brazil warning of trade wars, which in essense means that countries will begin taxing inflow of commodities and other investments, what is the impact of that to gold and silver? Is it favorable or unfavorable?
IMO it will most likely have the effect of making the USD stronger against other currencies as such it will help the price of Gold & Silver if you live in another country. If countries put restrictions on capital flows it will help stem the big US institutions trying to make money off the carry trade, this mean's more money is likely to stay within the US. For places like Australia and Canada which are commodity currencies, we would be less likely to see our profits eroded by falling exchange rates.
yes you are right, but I am referring to their strength to each other (exchange rates), not real things.. they are all going down against real things you are correct... I changed my language a bit in my previous posts to try and make it more clear.
The other side is if capital continue to flow into places like Brazil and strengthens the Brazilian Real and wars take place (meaning other countries conduct open market operations to weaken their currency) then that is even better because it becomes a race to the bottom and the price of real assets with skyrocket.
