From my pal in Australia:
The hedge against these inflationary policies (including here in Australia) is to invest in assets priced in dollars which cannot be created by a printing press. That includes oil, precious metals, and other energy commodities. The nominal price of these assets should rise as the money supply rises.
About Me
- Rich
- Enjoying our family, playing golf and enjoy chasing Lake St.Clair Muskies (catch and release), walleyes and perch, and playing golf.
Gold American St. Gaudins
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ReplyDeleteA report by the CPM precious metals and commodities research group in New York City asserts "gold is entering a new era," thanks to "a major rehabilitation of gold as a financial asset around the world" as investors look for safe havens in volatile times.
"Not since the Great Depression and World War II has sentiment about the state of financial and economic conditions been so pessimistic," CPM noted in its newly released Gold Yearbook 2009.
"The market consensus appears to be that the gold price will remain strong, at least through the first four months of 2009. All of the factors that have been driving investors to buy gold continue to be in place," CPM analysts said.
As the value of paper assets has been greatly diminished, CPM asserts that the "value of gold has been greatly advanced."
! ! ! ! This week gold fell 1.5% as the dollar firmed and stocks bounced up 6% on mixed economic data and fresh gov't stimulus. Gold closed in NY down $11.10 to $923.10/oz., silver fell $.18 to $13.34/oz
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