It is this expectation of global paper currency debasement which makes gold an attractive long-term investment.
It is this expectation of paper currency debasement which makes gold an attractive long-term investment for us.
With negative real interest rates, worldwide currency debasement, and inflation being the real threat ultimately, gold still remains attractive.
And as often as economic prognosticators prescribe currency debasement as some miraculous panacea, her question is a good one.
The rarer the commodity, the more it will behave like real money and maintain its value during a currency debasement.
Traditionally this is done with currency debasement (which the Fed and the BoE have already begun) or by imposing a haircut on lenders.
We can be thankful that the European Central Bank and the Bank of Japan are resistingthe temptation to follow our currency debasement with their own.
While the G-7 tried to legitimize the currency debasement with this statement, in reality, investors seem to be able to see through to the real motivations.
Financial intervention broadly: government control of interest rates and money supply, and long-term currency debasement are somehow non-issues even as federal regulation such as Dodd-Frank sweeps across the private financial sector.
Therefore, I believe that gold offers protection from central bank currency debasement and that adding a float shrink strategy can help diversify your portfolio and give you exposure to the substantial corporate profit distributions through buybacks.
While most logically identify global currency debasement as a primary cause, others say that gold is driven by: fear of economic uncertainty, central bank gold hording, international political conflict, or the ebb and flow of the Indian wedding season.
However, because the Fed and ECB have both proclaimed that they are on hold from debt monetization and currency debasement, the same monetary environment that led to the pronounced deflation that occurred during fall of 2008 has arrived once again.
He cited potential for inflation, currency debasement and a re-heightening of crises such as U.S. and European debt issues, although he concedes gold has lost some of its allure for now as many investors instead turn to the surging stock market.
FORBES: INTERVIEW: USAGX's Denbow: Gold Miners On Track With Focus On Profitability
America's monetary pooh-bahs still can't seem to distinguish between price changes that result from supply-and-demand and those that come from traditional debasement of the currency.
But the IMF plied its poisonous brew of budgetary austerity, higher taxes and debasement of the currency, particularly after Jean-Bertrand Aristide was restored to power in 1994.
Simultaneously, Brazil has to deal with appreciative pressure on its currency as a consequence of dollar debasement.
FORBES: Mantega: Inflation Under Control In Brazil As QE2 Pressures Real
应用推荐