mick silver
9th November 2010, 03:16 AM
http://blogs.wsj.com/marketbeat/2010/11/08/gold-hits-1400-take-your-victory-lap-gold-bugs/ ... By Matt Phillips
Bloomberg NewsThe white hot spotlight remains on gold today, as it punches through the $1,400 barrier amid nonsensical chatter about a return to the gold standard. Congrats to the gold bugs who’ve been riding this for a while.
We — and by “we,” I mean “I” — have been down on gold, seeing it as a bubble-licious asset class. But strangely, investors interested in the barbarous relic have failed to heed such warnings!
Anyway, analysts from Morgan Stanley point out in a note Monday that besides the conspiratorial frothing, television advertisements and ETFs that have helped drive gold higher, there has actually been some fundamental market changes that would confirm that inflation expectations are part of what is pushing gold higher in this most recent upward move:
Interestingly, even a better than expected October job data report released on Friday did not reduce gold investors interest. We think gold is finding momentum from [long-term] inflation concerns, as demonstrated by the rising 30-year to 10-year bond spread which is at an all-time high.
Bloomberg NewsThe white hot spotlight remains on gold today, as it punches through the $1,400 barrier amid nonsensical chatter about a return to the gold standard. Congrats to the gold bugs who’ve been riding this for a while.
We — and by “we,” I mean “I” — have been down on gold, seeing it as a bubble-licious asset class. But strangely, investors interested in the barbarous relic have failed to heed such warnings!
Anyway, analysts from Morgan Stanley point out in a note Monday that besides the conspiratorial frothing, television advertisements and ETFs that have helped drive gold higher, there has actually been some fundamental market changes that would confirm that inflation expectations are part of what is pushing gold higher in this most recent upward move:
Interestingly, even a better than expected October job data report released on Friday did not reduce gold investors interest. We think gold is finding momentum from [long-term] inflation concerns, as demonstrated by the rising 30-year to 10-year bond spread which is at an all-time high.