Obama Plus Bernanke Equals A Higher Gold Price
Richard (Rick) Mills
Ahead of the Herd
As a general rule, the most successful man in life is the man who has the best information
Investors are starting to realize that gold is a storehouse of value and a safe haven in times of turmoil. Gold’s price has risen because of the abuse and mismanagement of our monetary and currency systems - throughout history, gold has always shone the brightest when trust breaks down, confidence falls and fear climbs.
Latest demand statistics from the World Gold Council:
• Total gold demand in Q2 2010 rose by 36% to 1,050 tonnes
• Investment demand posted a rise of 118% to 534.4
• With the return of demand for consumer electronics, industrial demand grew by 14% to 107.2 tonnes, compared to Q2 2009
The Dow on gold’s terms is telling everybody something important is happening. I published “Silver, Two of Seven” just three weeks ago, in that article I included the following:
“In 2000 gold made its $260 per ounce low, in January 2000 the Dow was 10,900
10,900 / $260 per ounce = 41.9 ounces to buy the Dow
Today at 10,447 DJII and $1,250 gold it’s 8.53 oz to buy the Dow.”
As I write this, the Dow:Gold Ratio is 10,447/$1250 = 8.35 oz. Chart from earthlink.com
Comments on this entry are closed.