Recently there have been some interesting remarks on gold by several prominent hedge fund managers. I may add to these this weekend. These are not from people who are gold bugs of the nutcase variety. They are value seekers in all markets at all times. They are seeing what I see.
""Last week when Federal Reserve Chairman Ben Bernanke, Mr. Geithner and White House economic adviser Larry Summers spoke in interviews and on panel discussions, Mr. Einhorn said, "My instinct was to want to short the dollar but then I looked at other major currencies - euro, yen and British pound - and they might be worse."
Mr. Einhorn added, "Picking these currencies is like choosing my favorite dental procedure. And I decided holding gold is better than holding cash, especially now that both offer no yield."""
""Winning the race, Mr. Jones posits, will be gold, emerging-market equities denominated in local currencies and commodity-related stocks. “I have never been a gold bug,” he says in the letter. “It is just an asset that, like everything else in life, has its time and place. And that time is now.”""
I should have read this post first. Following up on my comments in the last post here now.
This is the other side of the (gold) coin (pun intended) when the governments prevent deflation at any cost. You get more inflation.
Joe
Posted by: Joe | October 30, 2009 at 10:11 AM
There had been a lot of speculation as to the bidder for IMF's self-immolation family treasure gold sale. IMF began with gold contributions by its founders in the 1940's, and now they are preparing to spend it all on dubious "going out of business" silliness.
This is another aspect of the Obamist scaling-it-down, winding-it-down, and gleeful grasping of defeat. "It's your problem now."
In any case it was the Reserve Bank of India that bought the 200 tonnes of gold at $6.7 billion which is the current market value as of last Friday.
Posted by: Tom | November 02, 2009 at 07:32 PM