Gold slump has wiped $560 billion from the value of central bank reserves after its price dropped 13% in the last two days. Global investors are switching to equities in a bid to generate income.
Central banks own 19% of all gold mined (some 31,694.8 metric tons) and are among the major losers from the asset price slump, according the World Gold Council in London. Global investors have sold gold to reinvest in riskier assets such as equities, as gold is no longer seen as a sustainable hedge.
Many experts say the Western central banks have no one but themselves to blame. Many of them, led by the US Federal Reserve and the ECB contributed to falling gold prices in a bid to support their domestic currencies.
However If gold doesn’t speak to you than maybe silver will. Silver was 5.50$ back in 2003, now its $23 people! Silver was $50 in august 2011! fiat currency is backed by nothing! We need a gold standard if we ever want the world to be balanced again. till then lets just be sheeple as the federal reserve prints out 86 billion a month out of thin air. You can thank QE3 for that. Clearly the first two didn’t work.
Want some advice? Invest in precious metals because they are and will always be the only true item that determines what paper is worth.
In the name of the silver the gold & all hard assets