Bursting Bubbles, Gold And Currency Fears Meantime, gold is a safe haven amid concerns of weakening currencies. The stealth currency war removes the last shock absorber to the system. Gold is a barometer of investor anxiety. Today, the consequences of the oil collapse, renewed tensions in the Middle East, the unraveling of Russia and a repeat of the Eurozone crisis makes gold a much more compelling haven than the dollar. Gold is a beneficiary of quantitative easing and has risen before every round of QE. Seven years ago, the Fed’s unveiling of QE was a catalyst in gold’s torrid bull run. Gold is also a hedge against central banks’ penchant of unpredictability in a world of competitive devaluations and negative interest rates. No one, it seems, remembers that it was massive monetary accommodation and rampant speculation that led to the bubble whose bursting caused the Great Depression. Gold is an alternative investment to the dollar for these central banks – it is the newest old global currency in the world and a good index of currency fears. Gold’s bull market has just begun. ***ALSO JUST RELEASED: Did We Just Get Confirmation That Economist John Williams Dire Prediction Is Now Unfolding CLICK HERE.
Posted on: Sun, 25 Jan 2015 06:45:18 +0000
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