ULTIMATE SAFE HAVEN
The impact on gold of the dollar and the U.S. economy
Gold should remain the ultimate safe haven as the U.S. economy continues to stutter and global currency markets remain in turmoil.
Author: Jeff Nichols
Posted: Wednesday , 03 Feb 2010
NEW YORK (American Precious Metals Advisors) -
It's now nearly two months since gold registered an all-time high of $1,227 an ounce, following a five-month run during which the metal rose more than $300 an ounce. From a long-term perspective, this is a remarkable 380 percent trough-to-peak gain from its early 2001 cyclical low point of $255.
Gold's strength last year reflected a number of factors: (1) record worldwide private investment demand (thanks, in part, to rising inflation expectations, pent-up demand from China, and the popularity of new gold investment vehicles in various markets); (2) net official purchases (after two decades of net selling) as some central banks sought insurance against further devaluation of their dollar-denominated assets; and (3) at times, a weaker U.S. dollar.
The impact on gold of the dollar and the U.S. economy
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