“Mann International”–Int’l PMs-[Gold Rises On Dollar Woes]
(NewDesignWorld Press Release Center) -- June 2nd, 2009, New York, USA- “Mann International”: Rising gold prices serve as a timely reminder that the US dollar is in big trouble.
“Mann International” : As if investors needed reminding, gold has reprised its role as the canary in the coal mine as the US dollar slumps under the weight of record stimulus packages, quantitative easing, unprecedented bailouts and a housing market whose seemingly perpetual decline continues to wreak havoc with banks’ balance sheets.
Gold, which rose spectacularly against sterling and the euro in 2008, climbed to a 4-month high against the world’s reserve currency ending the week at $978.90.
A “Mann International” source said that the debasement of the US dollar was one of a number of factors driving the gold price. She suggested that the return of risk appetite to the market had seen many investors who favored US Treasury bonds as a safe haven have now realized that gold offers the same status but with a potential for upside as Western economies battle asset price deflation with reckless monetary policy and, in the case of the UK and the US, quantitative easing.
“Mann International” also believes that China, which has doubled its gold reserves since 2003, may be very likely to diversify more of its foreign currency reserves out of the US dollar and into precious metals.
“Mann International” has reiterated its recommendation to its clients to acquire gold and silver as a means of hedging against what it calls “governmental profligacy”
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