11 November 2014

Alan Greenspan Comments about Gold

Over the last week or so the former head of the Federal Reserve, Alan Greenspan, has made headlines over his recent comments about Gold. Greenspan ruled the Fed from 1987-2006 and was perhaps one of the most celebrated Central Bankers of his time. That was until the mortgage crisis crippled the US economy and critics accused his policies of artificially inflating the US housing industry. 

Well, now Greenspan is on the speakers circuit able to say what he wants without concern of how investors will interpret his comments. According to an article that appeared in Sprott Global, when commenting about the future direction of Gold and interest rates, Greenspan said “Gold - measurably higher. Interest rates - measurably higher” (Source: Sprott Global (Thoughts) 10/31/14)

In another article on ZeroHedge he said that the bond buying program was ultimately a mixed bag and that it did help lift asset prices and lower borrowing costs. But it did not do much for the real economy. (Source: ZeroHedge 10/29/14)

In the same article he said that “I don’t think it’s possible” for the Fed to end its easy money policies in a trouble free manner…Going back to Gold, the final comment in the same article was Gold is a good place to put money these days given its value as a currency outside of the policies conducted by governments.

Gold and the Central Banks

The mainstream media overlooks the true value of owning gold as a form of real money. If Gold is not useful to own then why do almost all Central Banks hold Gold as part of their reserves? Why is Germany seeking to bring back the Gold it holds outside of the country? Why is Switzerland voting to substantially increase the percentage of Gold it holds as reserves?

Why have both China and Russia been increasing their Gold reserves over the last couple of years? The reason of course is that in a world of fiat money, Gold will protect the balance sheet of a Central Bank. Gold can be re-valued at any time to make up for paper losses if the system collapses.

According to another ZeroHedge article, one of the more stunning comments Mr. Greenspan also made was Gold is a currency. It is still by all evidence, a premier currency. No fiat currency including the Dollar, can match it. (Source: ZeroHedge 11/7/2014).

Do not let the mainstream media convince you the bull market in Gold is over. The more likely reality is that it is just getting started.

Author: celticgold.eu

Older The Bankers‘ lies and How protected Bank Savings are Newer Banks in the News Again