Thursday, August 25, 2011

Thurs Post #2: Alan Greenspan says "Gold is not in a bubble"


For all those who believe that Gold/Silver are wise investments, scorn is endlessly heaped upon them.

Called a 'barbarious relic' that doesn't generate dividends, the metals are always denigrated as an investment vehicle or as a currency. 

Which is why this bloomberg story caught my eye.

In a week where gold hit a record above $1,900 an ounce, Allan Greenspan came out with a shocking statment. The former chairman of the US Federal Reserve (1987 to 2006) said today that he did not think gold was in a bubble.
  • “Gold, unlike all other commodities, is a currency. And the major thrust in the demand for gold is not for jewelry. It’s not for anything other than an escape from what is perceived to be a fiat money system, paper money, that seems to be deteriorating.” 
Exactly!
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  1. UnknownAugust 25, 2011 at 5:45 PM

    Risk

    “I’VE never seen risk aversion this intense,” says the chief executive of a large European bank. “It is unsustainable.” His anxiety is understandable given the wild gyrations that rocked bond and commodity markets in early August and continued through the slow trading days of mid-August, when gold hit new highs and the yields on government bonds touched new lows in Britain and America.

    Get out there and shop damn it! We need to keep the party going...

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