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Do current geopolitical and economic conditions suggest gold and silver as diversification for bond investments?

*Reuters, by Pedro Nicolaci da Costa, June 7, 2007

“U.S. government bonds prices dived on Thursday as fears of tighter monetary policy globally fueled a break above 5 percent, unleashing another round of heavy selling.

Momentarily, yields across all maturities stood at or above 5 percent, the first such occurrence since July of last year.

The latest downturn was driven in part by a surprise interest rate hike in New Zealand overnight, and talk that Australia could follow suit.

While events in far-flung countries do not normally affect the benchmark U.S. bond market, the shift in global sentiment toward a concern with inflation was undeniable, and taking a visible toll.”

*This information is solely a highlight of the opinion of a third-party publication and is incomplete.  Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.

Monex Bullion Investor