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Thursday, July 23, 2015
“If You Don’t Own Gold, You Know Neither History Nor Economics” – The Reason For Our Confidence In Gold
What is the reason for our unbroken confidence in gold? Our predilection for gold is primarily based on our understanding of monetary history. At the moment, it appears as though faith in the omnipotence and infallibility of central banks is at an all-time high.
This goes hand in hand with new record highs in stocks and especially government bonds.
According to Jim Grant, who describes the price of gold as the reciprocal of the credibility of central banks, this is inter alia a likely explanation for the somewhat directionless performance of the yellow metal. Should the omnipotence of central banks be questioned by the markets, it could cause a fundamental change in perceptions and help gold regain its former respect and reach new heights.
kingworldnews.com/the-reason-for-our-unbroken-confidence-in-gold