David Rosenberg of Guskin-Sheff
May 5, 2010
In the interim, the ECB has been forced to water down its charter as it permits sub-investment grade Greek bonds as collateral. Sadly, the central bank is not a remake of the Bundesbank and the Euro is less of a “hard currency” than its architects could have ever envisaged a decade ago. Now there is talk that the ECB is contemplating a quantitative easing plan (see ECB Should Resist QE Siren Call on page C14 of the WSJ). The case for gold heading to $3,000 an ounce is getting stronger by the day. The Euro has already broken below 1.30 to the U.S. dollar and there is plenty of room for additional decline going forward. It’s only at a one-year low — wait until it moves to a decade low. Read more: LINK...
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Understanding the rise in gold is NOT about the rise in gold, but the loss of confidence in the U.S. dollar and other fiat paper currencies. At the end of all this madness people will flock to an investment that has maintained it's "INTRINSIC" value throughout history and that investment will be gold and silver. It is hands down the best performing asset class over the last decade, NO QUESTION! The important thing to realize is that the fundamentals driving gold higher are even stronger now than they were in 2001. GCC
