First, what are “central banks”? According to Wikipedia: “A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries. In contrast to a commercial …
For generations people have hoarded cash in times of economic uncertainty. For some that has meant hoarding cash in their bank accounts, while others have taken the more literal route and have stashed bank notes under their mattresses or in shoe boxes. Why do people hoard cash? It’s about feeling safe and prepared. The cash …
If you have been following world economic news of late, you know there are lots of scary questions on the table right now. Will Greece default on its debts? What will happen if and when the U.S. hits its debt ceiling? Will the Federal Reserve announce a QE3? (Otherwise known as printing hundreds of …
In my last post I wrote about how scarcity of supply, combined with potential movements into gold from stocks and bonds, could drive gold prices as high as $10,000. Well, here is another reason why prices could reach some pretty lofty heights. At a time when central banks have become net buyers of gold …
As I have mentioned in previous posts, gold is unique among investment vehicles because of its scarcity. Most investments, like stocks, bonds and real estate can respond to a sudden increase in demand. For example, if there is a surge in demand for residential real estate (not likely right now), more and more homes can …
Turn to any business news channel on TV, or read one of hundreds of websites online, and you’ll find very well qualified experts making predictions about where gold prices are going over the next few days, weeks or months. But the funny thing is, when the next few days, weeks or months arrive, these …
If you have ever wondered how close world governments are to recognizing gold as money, look no further than Europe. In a May 25 press release, the European Parliament stated: “The Economic and Monetary Affairs Committee of the European Parliament has approved gold to be used as collateral confirming its status as a high-quality …