Gold - Current Thoughts

By: Ian Campbell | Wed, Nov 30, 2011
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It is said by many that gold is a store of wealth in the context of purchasing power. This is something I have been increasingly thinking about over the past several weeks as:

So, I ask myself, why has the gold price stagnated in a U.S.$1,620 - $1,800 range since September 15, most often trading toward the lower end of that range in that period?

I have concluded that one important reason is that it is highly likely (based on my reading and thinking) that the financial markets continue to see the U.S.$ as a 'safe haven'. Said in a different way, I think the financial markets broadly see the U.S.$ the best of a bad lot, and are not as yet ready to 'give up on the fiat currency' system.

If I am right in this I have reached four conclusions:

 


 

Ian Campbell

Author: Ian Campbell

Ian R. Campbell, FCA, FCBV
Business Transition Simplified

Through his www.BusinessTransitionSimplified.com website and his Business Transition & Valuation Review newsletter Ian R. Campbell shares his perspectives on business transition, business valuation and world economic and financial markets influences on those two topics. A recognized business valuation and transition authority, he founded Toronto based Campbell Valuation Partners Limited (1976). He currently is working to bring his business valuation and transition experience to both business owners and their advisors in our new economic, business and financial markets normal.

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