Trend of gold as store of wealth ‘may start to snowball’–ScotiaMocatta

Deep-rooted global financial problems will escalate the demand for gold as a safe haven.
Author: Dorothy Kosich
Posted: Wednesday , 10 Dec 2008

http://www.mineweb.com/mineweb/view/mineweb/en/page33?oid=74850&sn=Detail

In its December Metals Matters report, ScotiaMocatta suggests that global financial problems “seem so deep rooted that demand for gold as a safe haven is expected to escalate.”

On silver ScotiaMocatta advised, “Investors remain key to silver’s fate, but its monetary attributes should keep investment demand strong.”

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2 Responses to “Trend of gold as store of wealth ‘may start to snowball’–ScotiaMocatta”

Elena Morozova Says:
December 12th, 2008 at 4:02 am
With respect to gold the question may be what is the IMF likely to do about further gold sales. Will it sell some more gold into the bullion market at a time of volatility and uncertainty in global financial markets?

Anxiety about the hyperinflationary impact of the global stimulus packages being introduced by many governments including the US and China does seem to be causing a strong interest in gold.

Just consider the significant additions made by Saudi investors in recent weeks and that Iran has converted its foreign exchange reserves into gold.
Alex Stanczyk Says:
December 12th, 2008 at 8:50 am
The IMF card is overplayed.

History shows us that it is just one of many tools used to affect public sentiment, and rarely ever does it follow through on its threats of selling gold.

In addition…any gold sold by the IMF would be done so at auction amongst central banks…and likely bought by China OTC anyway, which would not show up on the gold price.

With gold going into backwardation for the first time in history..we are looking at an amazing situation for stong gold fundamentals.

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