The article was an interview with a chap called John Embry of Sprott Asset Management and went on to reveal his penchant for a return to the gold standard in order to limit goverments' abilities to indebt themselves.
What we have seen this week is that, it would seem, the US dollar has become the 'safe haven' choice of the markets and that gold has put on its 'commodity hat' rather than its 'currency hat' ... a pity.
Things in America are bad, but not bad enough - and so the dollar looks like a better bet than the euro or the pound, to name but two. I have said out loud at Guernsey Mint that I thought that choosing a currency to put money into for safety at the moment was like choosing where to get shot - extremely painful ... but I do much prefer the analogy of the horses in the glue factory, I must say!
The stage is now set with increased global liquidity and policy easing measures from Europe, China and The Bank of England whilst we wait for the US to follow because news there is not yet bad enough to prompt further quantitive easing. But it does seem like we're waiting on a 'when' rather than an 'if' the US will follow* ... and that could lead to increased demand for some proper hard assets, I reckon.
* Perhaps QE3 is being held back for political purposes in this election year?
Saturday July 7, 2012 by