When Dr. Alan Greenspan became chairman of the Federal Reserve, he moved from the world of rhetorical economics to the world of action. His most recent memoir attempts to make sense of how the financial crisis of 2008 came to be and how we can better predict future crises, along with the role of gold in a global monetary system.
It is unknown where the gold would come from to replenish these ETF holdings were there a sudden surge in demand in the West in the event of a new sovereign debt crisis or a Lehman Brothers style contagion event.
The standard wisdom on gold is that it does well in times of economic bad news such as in the 1970s. But this time, Don Coxe believes things are different. In this interview, he explains why gold will rise when the economy improves.
As to the allegedly strong dollar, James Turk suggests comparing it to the price of gold rather than other fiat currencies for a better picture. And the world's newest currency—Bitcoin—has a lot in common with one of the oldest—gold.
Gold investors have recognized the correlation by returning to gold en masse. In August, investors rushed into gold, with the massive inflows of money going into the gold exchange traded products in August more than each of the prior five months.
We’re all aboard a roller-coaster ride, and it may continue for some time yet. We are living through a truly unique moment in financial history. The forces of inflationary stimulation are doing battle with the financial system’s apparent desire for debt destruction and deflation.