AM 1150 Kelowna - Radio Rallies & Reversals

On the subject of gold: It's had quite a run of late. Why? It has no yield and it's not as useful as other commodities. Why is gold back among serious investors and who is buying it? Apparently it is even available through ATMs in the gold market of Abu Dhabi.

To answer the question Don Coxe provides the following quote: "The longest established text based religion in the West is about the God of Jacob - His works and His worship. For roughly five thousand years, a believer summed up his credo by saying 'I believe in God.' But when this credo arrived, it had to share space with an alternative belief system that was around for thousands of years before the Judaeo-Christian era began. A believer in this system summed it up 'I believe in gold.'

According to the World Gold Council, industrial and jewelry demand is up sharply, but the big new demand is for gold hoarding. Global central banks are buying gold for their reserves and gold ETF holdings keep setting records. "So as a store of value for future generations:

If you can no longer believe in residential real estate,
and you can no longer believe in bank deposits,
and you can no longer believe in the dollar,
and you can no longer believe in the yen,
and you can no longer believe in the Euro ...
What can you believe in?
How about gold?"

And to address the issue that gold doesn't pay a yield: neither does cash right now. At least some gold stocks pay a dividend.

GB