Thursday, March 15, 2007

Gold rush

When I was little (and that was some time ago) once on TV I happened to see a transmission where an expert was giving advices how to invest a big sum of money for the future.
"I would buy gold", keep it and selling some once in a while to cover my expenses.
It is the best investment, the one you can be sure will keep its value in the future.
it didn't make much sense to me, also because at that time the currency was chained to gold and had the same value.
But those times are gone since long and with them also the value of our currency.
"The recent rally of the United States dollar notwithstanding, the greenback has nowhere to go but down . . . The dollar's current up tick is just a breather in its overall downward trajectory . . . The dollar is heading down, no matter what."
"The euro does not have much to recommend it, other than not being the dollar."

People who have not liked gold are re-examining their viewpoint. I think this will be a positive for gold bars , notwithstanding the many down days it has endured.
"The combination of problems in USA's financial system (think Fannie Mae (FNM, news, msgs), MBIA (MBI, news, msgs), American International Group (AIG, news, msgs) and General Motors (GM, news, msgs)), our inability to do anything to strengthen the dollar, the inherent weakness of other currencies and the inflation rate (which, while clearly not alarming, is running higher than any rational person would like to see) is exactly the recipe for a much higher gold price."

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