Paper Assets vs. Precious Metals
Posted by Investment Rarities on September 14th 2011 in China, Federal Reserve, General Economy, Gold, Monetary Policy, Short Sellers, Silver, Wall Street | Be the first to comment!
“The extreme volatility in the prices of gold and silver, the Dow Jones Industrial Average and in the 10-year Treasury debt interest rates all reflect a strong battle between two factions,” writes Patrick Heller. “On one side you have the U.S. government, its trading partners and allies pulling every tactic they can to try to keep people from fleeing paper assets for the safety of precious metals. On the other side are other central banks and private investors stepping up to acquire more physical gold and silver while they still can.
My own companies enjoyed extraordinary retail demand for precious metals last Friday, followed by even more than usual interest on the following Monday. To me it is obvious that the overall long-term trend is for gold and silver prices to soar much higher. The recent price volatility is a sign that the U.S. government is losing the capability to repress prices. Although there will doubtless be much more volatility in the coming weeks and months, you don’t want to stand against the overall trend.”
Related Links:
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KWN: John Embry – Institutional gold holdings will increase 12 fold
iStockAnalyst: China buys gold, challenges US dollar
P. Radomski: Will the dollar hinder precious metals in the short-term?
Bill Bonner: Passing the gold bar
CNBC: Asset manager: Central banks can fail, should return to gold standard
Got Gold Report: Positive money flow into gold and silver ETFs
GoldSilver.com: CNBC - HSBC – GLD – Public relations backfire
Reuters/Zero Hedge: International alarm over euro zone crisis grows
Stuff.co/News N Economics: Markets are losing the plot over Europe
Bloomberg/Globe & Mail: Banker: Greece should ‘default big‘; What a Greek default would look like
Financial Times: If Greece can leave, anyone can leave
