People working in Nepali bank tell me that if oil price keeps on rising (basically if average price of oil here in US reaches 5 dollars), it wouldn't be surprising if dollar weakens and goes to 60. It seems it is already overvalued.

Anyone knowing more than this, please provide your input.

"If the oil price keeps on rising" itself is an example of dollar loosing its value. Thats a given thing and you would not need an explanation from a Nepali Banker on where the $ will be traded with respect to Nepali Rupees.

For a short term, i think Dollar is bound to go up but in a long term i think it will go futher down as it benefits USA to devalue the dollar so that the manufacturing jobs can come back to US. Jobs comes back to the US and US buys back its T bills from china and india at a half price.

 Once the Govmnt stops printing money like paper and the intrest rates increase, dollar will go up.

 This is my thought. I don't think we have to worry if $USD 1=Rs.60. What worries me is what will happen if the fixed exchange between Nepal and India is cancelled. we say $1=Rs.60 based on Indian currency. Someday this fixed exchange rate of 100 India Rupee = 160 Nepali Rupee rule will be voided and then we will see the actual value of Nepali currency and Nepal economy.... that day, there will big economic crisis in Nepal....

@Nas Bro: I was just wondering if one can buy gold/silver and deposit them in a bank like cash ? How do you do it ? What are the strategies ?

Atiranjeet,

You can buy Stocks like GLD and SLV who claim to deliver you the actual metal upon request. They behave like cash.

Bkshres,

You have brought up a good point. There has been a good argument that India is actually piggy backing Nepali Currency with them and we have been enjoying the Indian Prosperity with the fixed exchange rate we have with Indian Rupees. There has been ideas that Nepali Rupees would be exchanged at ( $1 = Rupees 250) if it did not have fixed exchange rate with Indian Rupees. Now, i think that can be argued both ways...either India is being a good guy and preventing an economic disaster on its younger brother like it claims or India is being evil as usual by making sure INR does not fall  low enough where it would be much more cheaper to produce goods in Nepal than India.

Nas Bro,

If the world is really coming to an End and Dollar is indeed crashing, isint it wiser to buy the next dominant currency than Gold or Silver? It turns out GOLD and SILVER is just another metal they dig it out of the ground and has a less industrial use than Iron. Glen Becks and his Kind are helping naives get suckered into Gold and Silver. Are you watching what they did to Silver recently??? Silver lost 30% of its value in less than 3 weeks. I strongly believe they will do the same to Gold. They are selling/marketing gold and silver the same way they were markeing Housing back in 06/07, I think the gold will be crashed all the way below $1000  and Silver below 20.

If your theory holds any water, i would rather own a piece of farmland and guns to protect it than Gold and Silver. Even better, if US $ is indeed crashing it is lot wiser to buy the next dominant currency than Gold and Silver.

Bkshres

If nep rs is not pegged against Indian rs, that would be a good thing for Nepal, not bad.

Nas bro,

The same group of people who are controlling the $ are also controlling Gold and Silver. I would be really careful buying gold and silver at those levels. It was a good buy below $1000 but at $1500 now...there is too much downside risk.

 Nas bro kinna chai ka kinchau ni gold? What are the best places to buy gold?

 khoi ta NAS bro mero question lai ta baal diyou yaar :-). Kinna chai kaha kinchau gold/silver?

Buy canadian dollar, it will keep on increasing.

Bodmas:: tilak jewelers ma Kinne ni, sasto bharpardo

NAS Dai : "Gold and Silver are valued much more than Iron because they are scarce in nature that is why they are called PRECIOUS metals"

What if tomorrow they dig out a gold mine that has an infinite volume of raw gold Or some kind of badass chemical that can turn iron into gold??? Afterall it's an weird  unexplored world

ok say you buy load stack of gold and silver, given the scenario the value of dollar, due to inflation et al crashes, what would you then do about the gold silver reserve? what is the strategy? are you then talking about cashing in, again exchanging with the same currency which you are preaching about not using? how long should one hold on to these gold silver reserve? how does one measure the value given the scenario that the economy crashes, say at an apocalyptic scale? My point is what next?

GIven your prediction of global economic disaster, which is soon to come, would cause a domino effect in bringing down the civil society as we know it. In such situation I can guarantee that basic needs such as access to water, food, clothes, medicine, shelter precedes the value of gold, silver or any other precious metal reserve. Survival becomes an instinct.  

At current levels, in my opinion, precious metals are not the most secure investments; I do not expect gold to rise or plunge in the near future. The likelyhood of another Quantitative Easing is next to null, and even if the Fed raises the short-term interest rate, the raise will not be substantial enough to give the continiuity to the market movement that you might witness on the day, or two, of such announcement. Thus, expect to see the side-ways movement in the gold price.

Traditionally speaking, the corellation between dollar-index and oil-price has been pretty high (If I had to throw a number out there  without doing any calculation, I would say above -0.85). However, with the dollar already at this level, I do not expect the dollar-index to react as greatly as it did in the past to the rise in oil prices. What could drag down the dollar value is the current situation with the U.S. debt ceiling. I expect the U.S. to extend its debt ceiling, but with some delays. That being siad, I am not very sure on the extend of negative impact of delays in extending the debt ceiling might have on the U.S. dollar value.

Given the uncertanity in the U.S. debt ceiling, which may or may-not drag down the dollar value, I would not start taking profit on gold yet; I would hold on to it.

On a seperate but lighter note, NAS bro, why are you trusting banks with your 80% of savings (gold and silver @ bank locker)? I am pretty sure you are avid listener of Gerald Celente. Let me remind you the three Bs that Gerald detests the most: Bullets, Bombs and Banks. Also,given the world's doom day scenario, shouldn't you allot certain percentage of your portfolio to cans of beans?

If there is a dooms day as predicted by some, the site below might come handy - food insurance!

http://www.foodinsurance.com/

Regards,
Megalomaniac

 Nas bro, online gold kinne ramro store kun ho?

Well Said NAS.  Visit JSmineset.com for further info.

Online store- Apmex.com

Who is the wisest man to put money in Nepali bank?

What do you do NAS. I mean what is your profession.

नाश दाई त्नपाई को सुन चादी चोर्न पाये त माल माल भाईन्थ्यो होला। लौन कता छ त्यो खजना सुटुक्क खबर पाउन।

http://economictimes.indiatimes.com/quickiearticleshow/8931335.cms

Why gold prices will continue to stay high