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
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Through the Economic Straight Talk Newsletter Ian R. Campbell shares his perspective on the world economy, the financial markets, and natural resources. A recognized business valuation authority, he founded Toronto based Campbell Valuation Partners (1976), Stock Research Portal (2007) a source of resource companies market data and analytic tools, and Economic Straight Talk (2012). The CICBV* annually funds business valuation research in his name**. Contact him at icampbell@srddi.com.
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Source: The Contrarian Take http://blogs.forbes.com/michaelpollaro/
austrian-money-supply/