Gold prices continued to rise on Wednesday extending the all-time highs which followed India’s central bank bought 200 tonnes of the precious metal, swapping dollars for bullion as the country’s finance minister warned the economies of the US and Europe had “collapsed”.India’s decision to exchange $6.7bn for gold equivalent to 8 per cent of world annual mine production sent the strongest signal yet that Asian countries were moving away from the US currency.
The purchase by New Delhi’s Reserve Bank from the International Monetary Fund pushed gold prices to a record $1,090.90 per troy ounce, up 2.6 per cent on the day, as traders bet that other central banks would also become buyers.
Granted, $6.7 billion dollars is not a lot of money for the US government anymore, so you will probably hear officials shrug this off, but it is hard to spin this one as a positive for the US. International doubts about our economy, deeper doubts about the value of our currency, and financially more stable countries moving away from the US Dollar as a monetary reserve.
4 comments:
This problem can be easily solved.
MORE FREE GOLF CARTS!!!!
Or print more money! That always works doesn't it?
Um, just a minor point: I'm pretty sure an op-ed contributor from Moody's doesn't really qualify as the "press." I know it was in the NYT, which is the press, but the author is from Moody's, which is as far as I can tell isn't part of the fouth estate.
Also, where does all this gold come from that folks are buying? It thought there was only a single olympic-sized swimming pool worth of the stuff on the entire earth?
And Handbellover, if that is your *real* name, you mock what you don't understand. The golf cart is making a comeback, bro (thanks again for the tax contributions - I ordered mine yesterday, and its all tricked out with a faux Rolls Royce grill and a wicked cassette deck). When I'm driving my golf cart looking all pimp, you'll all be like "man that Dr. RosenRosen is sooo cool."
OK, sure. Moody's guy is not a media member, but a quick Google news search will find you plenty of news and op-ed pieces that make the point for me.
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