Advisor.ca: Vikram Barhat / November 23, 2010
"Gold is not trading on inflation expectations, it's really trading as an alternative currency to the U.S. dollar," said Paul Taylor, chief investment officer, BMO Harris Private Banking. "There's the expectation that the reflation of the U.S. economy is not good for the U.S. fiscal debts and deficit situation."
A deepening lack of faith in paper currencies has been driving investors globally to adopt gold as an alternative currency. "If you look at currencies around the world they are all faith-based initiatives," said Herring. "They are all paper currencies backed by nothing." LINK...
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A good article that touches on many of the points we've been talking about on this website.
As we've been telling our clients for a long time now. "The rise in Gold is NOT about the rise in Gold. It's about the loss of confidence in the U.S. dollar as the world's reserve currency." BK
