Gold Is Behaving Like a Financial Asset, ABN AMRO’s Boele Says

Jul.28 -- “Overall, positions are quite extreme,” says Georgette Boele, senior FX and precious metals strategist at ABN AMRO, who sees a combination of positive factors for gold as it rises to a record level. She speaks on “Bloomberg Surveillance.”

[TheMjoDoj]

Right now a gallon of milk in the US is about $4. If the US dollar sees inflation because of Fed printing, a gallon of milk could be $8, $10, whatever inflation dictates. You can't buy a gallon of milk today and resell it in a year. But you can buy Gold and resell it later. Right now buying Gold is not a bet on Gold increasing in value, it's a bet on the USD decreasing in value. Which has the same effect. Gold will always be a useless piece of metal but it can still be used to side step the devaluing dollar.

[dementeduncle]

The Bank of International Settlements considers gold a Tier 1 asset since the Basel III accord. Gold - and historically also silver - is money, not currency and will always outperform unlinked fiat currencies over time. Nixon took us off the gold standard in 1971, the USD has been currency, not really money, since that time. USD is a promissory note of debt. Gold is a physical element without counterparty risk. When interest rates go negative, you don't save your wealth in fiat currencies, you preserve your purchasing power in gold and silver.

[TheShays]

“Behaving Like”?? Money is gold, and nothing else. December 18, 1912 J.P. Morgan. Gold is the mother of all financial assets.

[SabbathSOG]

Gold is money. All currencies are paper.

[rre-group]

12/18 months of climbing in Gold and silver: safest place to be at the moment

[ricktaylor]

We are talk talking about paper gold and not holding gold

[jp]

People taking profits from stocks and going into gold ETFs (which are all now in the top 5 for inflows) instead of bonds which have very low yield or are now fully valued depending on your viewpoint.

[chanduissalone]

she does not know or understand what she is conveying....