Bloomberg reported that "Gold climbed to a record for the third time this week as investors stepped up demand for a haven from financial turmoil." So why has Gold become the safe haven of choice for investors who have become disenchanted with the stock market and the empty pronouncements by public officials?There has been an enormous increase in what's called "retail demand" (public demand) for Gold, or what is called "dumb money" demand in the industry -- people who are buying it simply because it's going higher. Bloomberg reports, "'All the debt and deficits are so high, the only perceived way out of this mess is a global synchronized devaluation of all fiat currencies,' said Michael Pento, a vice president at Euro Pacific Capital Inc. in New York." This is true. But Pento also says, "Gold is replacing the dollar as the world's reserve currency." This, however, is not true, since Gold is not going to become a reserve currency. Gold is, however, going to become a benchmark that global currencies now become priced in. (Conspiracy Planet)Thursday, 23 September 2010
Gold & Silver: How High & Why?
Bloomberg reported that "Gold climbed to a record for the third time this week as investors stepped up demand for a haven from financial turmoil." So why has Gold become the safe haven of choice for investors who have become disenchanted with the stock market and the empty pronouncements by public officials?There has been an enormous increase in what's called "retail demand" (public demand) for Gold, or what is called "dumb money" demand in the industry -- people who are buying it simply because it's going higher. Bloomberg reports, "'All the debt and deficits are so high, the only perceived way out of this mess is a global synchronized devaluation of all fiat currencies,' said Michael Pento, a vice president at Euro Pacific Capital Inc. in New York." This is true. But Pento also says, "Gold is replacing the dollar as the world's reserve currency." This, however, is not true, since Gold is not going to become a reserve currency. Gold is, however, going to become a benchmark that global currencies now become priced in. (Conspiracy Planet)