Tags: gold | central banks

Central Banks Grabbing Gobs of Gold

Tuesday, 29 Jun 2010 10:26 AM

Central banks are buying so much gold that investors are beginning to wonder if the world is returning to the gold standard — and some financial advisers see that as a partial possibility.

"We will see some derivation of a gold standard in the next 5 to 10 years," said Brian Hicks, U.S. Global Investors money manager, in a conference call this week with financial advisors and consultants, CNBC reports.

“We have been seeing baby steps in the direction of countries holding more gold in their official reserves, and that this gold in effect is backing their currency.”

While Hicks doesn’t expect a return to a true gold standard in which paper money could be exchanged for gold, he thinks there will be “some percentage, perhaps 20 percent” of reserves will be in a “basket of currencies.”

Investor Jim Rogers expects gold will go much, much higher over the next decade.

In fact, he expects it will hit $2,000.

“Governments all over the world are debasing money at a rapid rate and that has always led to higher prices for real assets throughout history and it will this time too,” Rogers told thestreet.com.

“Rates are going to go much, much, much higher,’ Rogers says.

“I'm judging the world as it goes. I see that actions by governments all over the world are making it worse. So I presume that will continue and gold will go that much higher over the decade.”

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Central banks are buying so much gold that investors are beginning to wonder if the world is returning to the gold standard and some financial advisers see that as a partial possibility. We will see some derivation of a gold standard in the next 5 to 10 years, said...
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2010-26-29
 

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