Sunday, November 29, 2009

Other than currency devaluation, what's driving the price of gold and silver?

SHOOT: When things fall appart - as they are - the last remaining hedge, is gold.
clipped from
RW: Well, a lot of it is fear; gold is now basically considered to be money in many of the foreign countries, partially in the U.S., more overseas. I think a perfect example is Vietnam. It looked like they were going to have some things that would work out in their economy, and unfortunately for them, a lot of it's coming apart. And they know from experience that if they can get into gold and hang on, they're going to be a lot better off.
And, China is the number-two gold producer now, we've been told. They're not selling any and not only that, they're buying it. Further, they're encouraging gold sales to consumers.
And now I am more convinced than ever that with the next big drop in the stock market, the gold and silver shares could really depart from the rest of the mainstream market, especially with the dollar being so weak.
"If gold will stay above $1,000, it's never going under $1,000 again."
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