Thursday, February 7, 2008

Gold as insurance in times of crisis

Today the price of gold rose above US $900 an ounce. Is gold the best insurance in these troubled times? One analyst noted:
"Gold doesn't have a policy, gold doesn't have a central banker, gold doesn't have a printing press. It's a form of insurance."*
Gold, by virtue of its simplicity and antiquity, is the antithesis of today's complex and overly ambitious financial institutions and mathematics-driven mechanisms which bear primary responsibility for the high degree of uncertainty plaguing today's markets.
*Marc Stern of Bessemer Trust as quoted by the WSJ (Feb 1-3).

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