Gold Prices pushed on to new record highs against the Dollar early Wednesday in London, breaching $1313 an ounce as the US currency fell to new 5-month lows vs. the Euro and Western stock markets fell amid street protests and a national strike in Spain.
“There is no default risk with gold and with all of the uncertainty that we have today with the banking system globally, all the uncertainty that we have with the sovereign debt risks and crisis really, that we’re seeing globally – people are moving more and more into physical tangible assets.”
Believes that this state of affairs is likely to continue because, from a big picture point of view, “It’s becoming increasingly clear that the system is broken and the tools that central banks are using are not the right tools. When you have a broken system, you have to sort of step back and take a look at what’s going on.”
“If the market doesn’t like the money that’s coming out of governments, they’re going to move to other alternatives and the natural place they will move is gold.” As for prices, it is maintaining his view of gold at between $1,800 to $2,000 although he does admit that it may be a little overoptimistic to expect it to get to that level by year end.
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