Issuu on Google+

Gold Bullion Bars

Tuesday, October 16, 2012

Slow economic growth ... has been the primary driver of gold for the past decade"

This summer bore witness to a rather tedious, politicized discussion about the resurrection of the gold standard. But one can argue now that the idea of a gold standard is outdated. Why? The reason is simple: gold, over the past ten years, has already handily and beautifully served its balancing function to the end of growth and the manic attempt of governments to fight industrial decline. Moreover, "debate" of the kind seen recently between high profile investors such as Warren Buffet and Ray Dalio further illustrates that the discussion of gold remains trapped in identity politics. It is as though mere association with gold confers all sorts of meaning. But none of this actually pertains to gold's new role, here in the 'era of no growth.' Interestingly, Paul Krugman has done some of the best (and politics-free) commentary on gold in the past year; I highlighted his views in last Autumn's essay 'Gold and Economic Decline.' I remain in agreement that the poor prospect for economic growth, rather than inflation from 'money-printing', has been the primary driver of gold for


the past decade. Gold has, accordingly, outperformed nearly every other asset -- especially stocks and real estate -- and for good reason. Krugman wrote: For this is essentially a "real" story about gold, in which the price has risen because expected returns on other investments have fallen; it is not, repeat not, a story about inflation expectations. Not only are surging gold prices not a sign of severe inflation just around the corner, they're actually the result of a persistently depressed economy stuck in a liquidity trap -- an economy that basically faces the threat of Japanese-style deflation, not Weimar-style inflation. While many participants continue to use gold as a call option on future inflation risk -- and from a resource and food standpoint, there is substantial inflation risk -- the launch of QE3 more pointedly confirms the failure of Western economies to produce growth. It's for this reason that gold should prove to be more sensitive to reflationary policy than industrial commodities over the next year. More information can be found online at http://www.goldbullionadvisors.com

Posted by Richard Davey at 12:32 PM

Email ThisBlogThis!Share to TwitterShare to Facebook

No comments:


Post a Comment

Object 1

Newer Post Older Post Home Subscribe to: Post Comments (Atom)

Blog Archive

▼ 2012 (106) • ► November (9)


▼ October (71) • Gold's "upside is well beyond $2,000," CEF Holding... • Low Asian demand presents golden buying opportunit... • As the Fed's balance sheet grows, Gold could hit $... • McAlvany Wealth Management: "Heavy emphasis on the... • Gold "more likely" to top $2,000 next year, Sprott... • Germany knows: If you don't hold your gold, you do... • Standard Bank, UBS bullish on Gold Bullion • Central banks continue to drive gold prices higher... • "We have a positive view around Gold Bullion," say... • Barclays on gold: "We retain a positive outlook fo... • Billionaire: Gold is "the largest part of my portf... • Gold Bullion imports by India set to rise • China buying up Australia's Gold Bullion exports • Gold to average $2,000 in 2013, CIBC World Markets... • Eurozone crisis will keep driving gold even if inf... • Saxo Bank sees gold breaking record high in Decemb... • Slow economic growth ... has been the primary driv... • "We'll see $2,300 gold by January 2014," Casey Res... • The best month for gold is heading this way • Central banks' expansionary policies will boost Go... • Investors switching from gold ETFs to physical bul... • Five Reasons to Own Gold Bullion • Gold as a Viable Investment Alternative • Gold Bullion equals High Returns • "Gold is primed for a breakout," MarketWatch repor... • Credit Suisse raises gold, silver forecasts for 20... • Central Bank Gold Bullion Buying Hits Record • Gold is money, not a commodity, declares Deutsche ... • $3,000 and $5,000 Gold," Bank of America say • South African Strikes Halt 39% of Nation’s Gold Ou... • India's Gold Bullion Reserve jumps to $26 Billion • Investors should double their Gold Bullion holding... • "Gold Bullion on the verge of an important break-o... • Patience pays as gold looks to move higher • Rising investment demand will support gold, Saxo B... • "Gold Bullion is going to be one of the best asset... • "QE3 has reignited inflation expectations" • Signs of a resurgent gold standard emerging worldw... • Benefits of Vaulting Gold • Gold Bullion - Eternal Standard of Wealth • Central Banks from Russia, Mexico and Turkey bough... • Hong Kong to build Gold Bullion Vaults • $3000 Gold Bullion target • Gold Bullion move easily above $2,000 • Rothschild Wealth Management exec sees Gold Bullio... • Hong Kong gold exports to China rise 12% • Gold is the "Safe-Haven" • Vaulted Gold Bullion • Gold Bullion as an Investment Opportunity • Do Gold Bullion have the same Value as Money? • The International Monetary Fund is buying Gold Bul... • Positive Forecast on Gold Bullion • New Report suggests scarcity of Gold Bullion • China buying Gold Mines worldwide • World's biggest hedge fund still bullish on Gold B... • Central Banks lease Gold Bullion • What Factors Affect the Price of Gold Bullion? • Gold Bullion has good Long Term Support • This Move In Gold Bullion & Silver Will Look Spect...


• Gold rallies to highest price of 2012 • BlackRock exec predicts $2,400 gold by next summer... • Gold is money, not a commodity, declares Deutsche ... • Signs of Gold Standard continue to emerge in China... • PIMCO analysts call Gold Bullion a "compelling inf... • Investing in Physical Gold • Vaulted Gold Bullion as an Investment • Gold Bullion Shortages coming soon ! • Return to Gold Standard? Why Price Would Hit $10,0... • PIMCO fund manager buying gold bullion stake • First Asset Management Targets $2100 Gold Bullion • Gold Bullion continues to be a great Investment ► September (26)

About Me

Richard Davey Consultants to the banking industry to supply gold bullion http://www.goldbullionadvisors.com View my complete profile

Awesome Inc. template. Powered by Blogger.


slow-economic-growth-has-been-primary