Preserving and Growing CASH Reserves

There’s still plenty of chaos and questions out there in the investment world this New Year.

But, what I find myself thinking about is protecting the basic underlying value of my assets.

Where can I be, at least somewhat, protected from the surprises that surely await this coming year?

While I’ve pointed out many short-term opportunities and swings in intra-day and daily trends on this blog, what I’m going to write about (in this posting) will be asset protection, and not short-term investment opportunities, but trends that last up to a year and more.

In the past, I’ve pointed to the Australian Dollar as one of those “safe havens”  in today’s world of investment.

The Monthly Chart of the Australian Dollar vs. the US Dollar shows just why that is.

Look at this long-term up trend (follow the green-arrowed line)!

This isn’t a an individual stock, a stock market, commodity or a day trading opportunity that will be gone in an hour.

The Australian Dollar represents a nation and a resource rich nation in a day and age when there is an increasingly incredible demand for more and more basic resources.

The fact that one of those Australian resources is Gold is still another positive factor.

But, even pushing that to the side for the moment, where else could you have experienced essentially 3% growth per month on your MONEY by still having CASH in your control sitting in a bank account at that??

Think about it for a second.

If you converted cash into Australian Dollars and had those Australian Dollars in an Australian Dollar account in a bank, not only would you have made around 36% gains in the VALUE of your CASH, but, you would have also gained interest on the cash account as well.

And, that interest would have also been paid to you in a rising value currency (Australian Dollars), not a depreciating one (US Dollar).

Yes, there have been higher appreciating markets out there. But, there’s an entirely different feel to CASH, I’m sure you’ll agree.

This isn’t Gold, which has become an investment (an therefore a manipulated) vehicle.

This is CASH- Where every investment eventually comes back to rest up for the next foray out into the chaotic money-world.

You could have even made 36% on your Australian Dollars if they had been socked into pillow-case, tied up and tossed into the attic for a year.

Well, you see the point.

One doesn’t always have to be ‘busy’ investing to increase one’s net worth. A few carefully chosen long-term trends in non-leveraged areas can serve you well.

Will the Australian Dollar continue it’s performance for this next year?

W.D. Gann, probably the Greatest Trader of the 20th Century, used to say that there is a time and trend for every market and that, when that time is up, the trend would have to shift directions.

The chart above shows that the long-term trend is still intact and, for that to change directions will take quite a shift in momentum. But, of course, some day even this fine market trend will end.

But, you can rest assured that there will be some other cash-equivalent area of growth that can protect one’s asset value.

There always is.  There always will be.

Smart money always has a place of refuge, so, Let’s just follow the smart money!

We’ll keep putting the ‘Excalibur’ tool to work to find just where that is during the year. -George

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Tags: WD Gann, stock market prediction, gold traders
The Excalibur Method, gold price predictions, timing the markets, money tigers, trading education, gold price charts, e mini trading, technical analysis

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