WEEKLY FINANCIAL REVIEW: Gold is All That Glitters
Many think greenback glory days are numbered.
Bryce Knorr
Published: Feb 17, 2009
Most U.S. markets officially were off for a holiday on Monday, but the anxiety felt by investors hardly took a vacation. Wall Street appears headed lower today, with concerns ranging from banks to autos to the economies of our trading partners around the world. Risk aversion is the watchword of the say, with gold and the dollar making new highs for the year.
Those who worry about long-term inflation and budget deficits believe the greenback's glory days are numbered. But gold is shining, drawing attention for more than the usual gold bugs. Prices tested $950 last week and are moving sharply higher this morning.
Investors are looking for more than a safe haven when they buy gold. They also seek not only preservation of capital, but appreciation in value as well. If the massive spending underway around the world to stimulate the global financial system does lead to inflation, gold bugs are touting $1,650 or higher as their target.
Of course, those who love the shiny metal have been wrong before — for about 25 years, as a matter of fact. But the rally in gold demonstrates just how pervasive the doom and gloom mentality is right now.
To read Bryce Knorr's complete weekly financial review, click HERE.
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