Where to put your money now?
In the dispute between the dollar and gold, says our old friend Lord Rees-Mogg in today’s TIMES of London, “there’s no contest.”
As a store of value, says his lordship, gold is unbeatable . “Even now its purchasing power in terms of physical assets is not far distant from 300 years ago, before Isaac Newton’s recoinage of 1717.”
America has not protected the value of its dollar , says Lord Rees-Mogg. The last American Fed chief who cared about preserving the purchasing power of the dollar was Paul Volcker. He left his post 20 years ago. Since then, the role has been filled by two inflationists – Alan Greenspan and, now, Ben Bernanke. As a result, people try to protect themselves, by buying gold.
“Gold is a defence against inflation. In November the Americas will elect another inflationary president. That will be good for gold, but bad for the dollar.”
The Daily Reckoning Australia