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The Wall Street Journal – Gold Investors Rush for the Exits
Gold’s status as a safe haven is looking shaky. Investors often have rushed to gold during flare-ups in the European crisis. But as they weigh Greece’s future in the euro zone and fret about Spain’s credit-market woes, fewer investors are seeking out the precious metal…Bullion hasn’t been in negative territory this late in the year since 2008, when investors were liquidating assets and scrambling for refuge. Instead, investors are finding more comfort in U.S. Treasurys and German bonds. “They’re trumping gold as a safe haven,” said James Steel, a gold analyst at HSBC. The problem for gold is that demand for Treasurys is leading to a rising U.S. dollar. That hits gold, which is priced in dollars, by making it more expensive for buyers who hold other currencies.
Source: Bianco Research
Category: Gold & Precious Metals, Think Tank
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.
“That hits gold, which is priced in dollars, by making it more expensive for buyers who hold other currencies.”
Moron.
3,800 Fiat currencies all went to a value of 0 and got reset. Another 150 +/- are going to. For the first time in history—simultaneously.
That’s a bit extreme Davos.
I’m on the euro breakup bandwagon, but it looks like the currency should survive much longer in some lesser form. Likewise the yen, the dollar and the RMB.
Ironically, my last involvement with gold was in the futures market right before your graph begins. It had just spiked and settled back down again. I made about 1500.00 on one contract, gave it all back in soybean meal. I watched the big runup in the early eighties. Same talk about paper dollars – ptui! – and the eternal upward valuation of the blessed metal before it all came back down to earth again.
[...] How’s that safe haven looking [...]
Extreme is spending spending 50 cents of every dollar spent that you don’t have.
Extreme is some 600 trillion to 1.6 trillion in derivatives that marries us to them.
Extreme calling your debt 16 trillion when you have the same amount owed in social security, another 20t owed in prescription drugs, and a whopping 83t owed in medicare.
Extreme is believing you can wipe away those unfunded liabilities and not crater the economy.
As for the 1980s—this isn’t your grandfather’s (Volcker’s) economy that could be pulled back from the cliff.
ps, you better get used to bus fare and McDonalds.
CORRECTION:
Extreme is some 600 trillion to 1.6
trillionquadrillion in derivatives that marries us to them.