Enzio's Clock

Background

1. Iran and gold

We need not go into detail what happened last Tuesday - Friday at the Waldorf Astoria in New York City. Suffice it to say that on-

• Tuesday, Iran sent a cryptic letter to the U.S. telling her of the nuclear facility at Qom, Iran;
• Wednesday - Thursday, Obama and team worked out a response strategy and sold it internally to her friends (Europe) and foes (China, Russia), and
• Friday, Obama goes public on the floor of the Pittsburgh Convention Center, calling Iran's nuclear facility a "direct challenge to the basic foundation of the non-proliferation regime."

Whether Obama is yet again over-selling a concept, this time, disarmament; or, indeed, whether yet again Israel will feel threatened so as to create a pre-emptive strike (her foreign minister did demand an 'unequivocal' Western response to Iran's announcement, we cannot say.

All that is certain is that Iran's letter of Tuesday is the harbinger of a crisis that will hit in about three - 6 months i.e. by the time the U.N. reporting deadline for Iran's other facilities has expired, or by the time that Iran has made her nuclear missiles operational. 

2. How to Make Money Off This Idea

1. Always consult your financial adviser first.
2. Buy gold.  I own the ETF, GLD:US, as one entry vehicle. 
   
3. Short the dollar.  If the current trading paradigm of "gold up, dollar down" holds, then I guess that you have to go with the flow, even if, intuitively, I just don't understand this paradigm. Perhaps a reader would care to explain it to us?