Gold Reads
* Precious metals are again demonstrating how a healthy bull market works: Two steps forward, one step back. A “buy- the- dip” strategy is recommended. Year -to- date gold prices are up 12%.
* “Top investors in precious metals are waiting for a pullback to buy, but they say gold looks like a promising inflation hedge well into the future. China is hungry for it, too. Hedge fund luminary John Paulson is convinced that gold will be a very good way to protect himself from the eventuality of currency debasement (i.e., inflation). He observed that if one thinks about gold in a three- or five-year time horizon (instead of hour to hour, day to day or week to week), the probability increases of gold being higher over time — and, most likely, much higher,” reports MSN.
* “The dollar should be devalued because the U.S. economy is less competitive than other economies and has higher debt, and some form of SDR should become the world’s reserve currency,” said Wilbur Ross, of WL Ross & Co to CNBC.
* Ed. Note: When asked about buying gold to hedge a falling dollar Mr. Ross said he views gold as nothing more than a “psychological commodity”. Perhaps, but so is the dollar, yen, euro and SDRs. The big difference is that gold insures a stable quality of life in the future, paper promises do not. Gold alone creates economic confidence, government-created currencies all depend upon confidence.
Categorised as: Gold News