According to The Telegraph, a newspaper in London, England, Gary Dugan, the chief investment officer for Merrill Lynch, says that rich investors now prefer gold to paper securities. "People are genuinely worried about what the world is going to look like in 2009. It is amazing how many clients want physical gold, not ETFs," he said, referring to exchange trade funds listed in London, New York, and other exchanges.
"They are so worried they want a portable asset in their house. I never thought I would be getting calls from clients saying they want a box of krugerrands," he said.
According to The Telegraph, Merrill-Lynch predicted that gold would soon blast through its all time-high of $1,030 an ounce, and would hit $1,150 by June. They see gold as a "safe haven" in deflation, and as a store of value in an inflation (which I think is more likely).
Merrill-Lynch expects global inflation to hover near zero, with rates of -1% in the industrial economies. Maybe at first, but with the trillions of dollars being pumped into the economy, I wouldn't be at all surprised if we experience double- and maybe triple-digit inflation by the end of the year.
Virtual buckeye to FrankRep at the Ohio Freedom Alliance.
11 comments:
GOLDDDDD
well, you know, I have some money that is backed in gold, so, whatever
Well, good, but it's not the U.S. dollar...
Harold
it actually is
No it isn’t, Robert. If you own a gold certificate, it’s redeemability in gold was repudiated in 1933. If you own U.S.Notes or silver certificates, their redeemability in silver was repudiated in 1971. Federal Reserve Notes are backed only by the “full faith and credit of the United States,” which in practical terms means Treasury notes and bonds – in other words, debt. You can get the short course from Matthew Cember’s posts here. For further proof, read G. Edward Griffin’s The Creature from Jekyll Island.
If there were no national debt, there literally would be no U.S. money. On the other hand, would you really want to loan money to someone who is more than $53 trillion (since the bailout, closer to $60 trillion) in debt?
Brace yourself – history teaches us that a hyperinflation is coming. Gold and silver provide the only means for maintaining value in that situation.
SO my "backed by the US treasury in gold" bill no longer is valid
oh well, the 10$ is still worth atleast 150$ in cash
Don't forget... gold can be confiscated by the Federal Reserve.
What law authorizes them to confiscate gold? The original 1933 law that enabled gold to be confiscated was repealed in 1971.
NOOOOOOOOOOO, they are going to take my tv and electronics
Robert:
No, they won't take your TV and electronics (but might censor your Internet usage like the Chinese do). They want you to be so busy being entertained that you won't go out and
... do anything subversive.
Harold
I was going by things such as the laws referenced in the letter here from the US Treasury Dept in response to an inquiry by the gold antitrust action committee:
http://www.gata.org/node/5606
It seems to reference wartime and foreign transactions, but the explanation seems a bit vague.
I may be misreading this or perhaps it's not as accurate as claimed at the site (I know "goldbug" sites often have to be taken with a grain of salt).
Whatever you've found on this would be helpful.
Apologies to all if I'm misreading...
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