5:46 AM
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Make Money Blog$;Believe it or not Ripley! The People’s Bank of China(PBOC) recommended yesterday that 1 billion Chinese consider buying gold as a hedge against inflation and to preserve values in a world where currencies can fall.
The PBOC Financial Markets Review came out just as several major currencies were indeed declining in value against gold; the dollar,1%, the Swiss franc,2.5%, t he British pound, 2%, and the Japanese yen, 2%.Wow! Be like the Fed telling you to buy oil stocks or crude oil futures due to expectation higher gasoline prices this summer.
So, add the PBOC to other secular influences on the price of gold; namely the conflict in Libya, the European sovereign debt crunch, the developing nuclear disaster in Japan and the extraordinary political unrest in Syria, Yemen, soon traveling to other Middle Eastern capitols. All unexpected by financial market analysts.
And whoever could conceive in their wildest fantasies that 12 states of the union- including New Hampshire, Vermont, Colorado, Indiana, South Carolina and Washington would propose to allow their citizens to use gold and silver coins as legal tender. Gold and silver coins to pay your rent, grocery bills and taxes.
And did you now that gold was selling quite well to ordinary citizens of India at 466 post offices on the subcontinent. Or that India has public companies that offer credit to people wishing to buy gold or silver. Loans to buy gold and silver.
No wonder gold equities were up 5.07% last week, though bullion only rise 0.75%.
Where to now for gold? Goldman Sachs says $1565 in 6 months and $1690 in 12 months. That would be a nifty 18% in 12 months. Though, Goldman warns a short-term lift could spark profit-taking. Hasn’t turned the big holders like Soros and Paulson and their brethren in hedge funds into liquidators yet. That will require Fed Chairman Bernanke to raise interest rates.
source:http://blogs.forbes.com
Posted in: berita
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