Gold’s Room to Grow
Posted by Investment Rarities on April 9th 2011 in Federal Reserve, General Economy, Gold, Monetary Policy, Short Sellers, Silver, Wall Street | Be the first to comment!
Following up on his article pointing out the relative underownership of gold, U.S. Global Investors’ Frank Holmes restated the case in an interview with CNBC, about which Expected Returns writes: “One of the bullish arguments I’ve made for gold is that it is actually underowned on a global basis. According to Holmes, the value of gold as a component of financial assets has actually fallen since 2000. If global GDP grows year after year, the implied value of global assets like gold rises. It is foolish to ignore relative value when making price forecasts.”
Also appearing on CNBC, Marc Faber spoke of attending a conference of investment professionals and discovering that none had more than 5 percent of their personal assets in gold: “If it were a bubble a lot of people would have gold. The whole world would be trading gold 24 hours a day. But I don’t think it’s really a bubble. I think gold is maybe cheaper today than it was in 1999, when it was $252.”
Related Links:
MarketWatch: Gold settles at record; silver ends at $40.61 an ounce
Coin News: Gold and silver streaks continue, weekly gains soar
P. Radomski: Breakouts in gold and silver prices
Financial Times: Gold and silver fever grips investors
Zero Hedge: On silver’s exponential price feedback loop
Across the Street: Guess who’s almost out of silver?
Reuters: Silver defies bears to target $40/oz and beyond
Barron’s: Despite silver’s run, gold seen as better bet in future
CNN Money: Gold: ‘This is the perfect storm‘
Hard Assets Investor: Gold sweeps currencies
Seeking Alpha: Gold vs. the dollar: A crisis case in point
ChrisMartenson.com: Gold is sending a signal that the monetary system is in grave danger
Bloomberg: Fed’s Fischer says Fed near ‘tipping point,’ must normalize policy
CNBC: Investors start to worry about end of cheap money
SafeHaven: Will the precious metals rally continue if there is no QE3?
Casey Research: Beware the Ides of May (scroll down)
