Why will wealthy and knowledgeable investors move to tangibles and areas of intrinsic value?
*Dow Theory Letters, Richard Russell, August 7, 2006
“Incidentally, one of the main reasons for rising gold, ironically, is the central banks. I say ironically, because for years the European central banks along with the British central bank were sellers of gold. But with trillions of irredeemable dollars now sloshing around the world, the central banks of Russia and China have already decided to “diversify away from dollars.” Part of their diversification programs will be to up the gold part of their reserves to approximately 10 percent. As distrust of the dollar and of the US increases, a growing number of Asian central banks will opt for gold to mix with their holdings of assorted paper currencies.
The movement of the world’s wealthy and knowledgeable investors to tangibles and areas of intrinsic value will not be lost on the central banks. The era of “too much paper” is slowly giving way to the era of “intrinsic values.” The authorities still haven’t learned how to print gold or silver or diamonds or Picassos, and that simple fact is dawning, slowly dawning, on the world’s population.”
*This information is solely an excerpt of a third-party publication and is incomplete. Please subscribe to the referenced publication for the full article. 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.