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Bernanke on the rise of GOLD

Commodities / Gold and Silver 2010 Jan 31, 2010 - 12:03 PM GMT

By: Vishal_Damor

Commodities

Bernanke was asked specifically whether the rise of GOLD should get him worried about the dollar reserve status. He doesnt seem to be too worried. But then he was not worried when the sub prime crisis was blowing off into his face in 2008.



On a serious note, what does he know? Gold is in a bull run and the least he could have done was to accept that, yes Gold got out of hand due to the past mistakes of FED and we will correct it instead of sweeping it under the carpet.

His statements makes me absolutely certain, Gold is going to keep rising.

The very fact that he mentioned “When ever there is a crisis, dollar rises” makes me curious. What he was implying here was that, whenever there is a crisis, people come back to the dollar cause of the liquidity that it offers more than anything else. In other words, FED needs world economic shocks to keep dollar from falling off. There is a theory that is going on around, all economic shocks in the last decade including the recession of 2008 were FED engineered and to keep the dollar from falling off people wallet. That theory may just have reinforced itself after Bernanke statement.

Maybe Chairman, you should be concerned about the debt that you are piling up instead of worrying of dollar reserve status.

Vishal Damor
http://investingcontrarian.com/

Vishal Damor, works for an emerging market financial consulting firm and is the editor at INVESTING CONTRARIAN, a financial analysis and reporting site covering commodities, emerging markets and currencies.

© 2010 Copyright Vishal Damor - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


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