Gold and Sovereign Debt
Moody's Investors Service gave gold a nice boost when they announced the ratings for the four largest AAA-rated economies - the United States, the United Kingdom, Germany and France - are increasing in risk.
Think of this in relationship to all the concerns over the sovereign debt of little Greece and the other PIIGS nations (Portugal, Ireland, Italy, Greece and Spain), and it shows the risk we're all still under.
With no currency in the world trustworthy at this time, gold is increasingly being considered the only currency that could be considered a safe place to put your money.
Although historically the dollar and gold usually move in the opposite directions, we are not in normal times any longer, and even though the U.S. dollar may rise, that no longer is a guarantee gold will fall, based on what I mentioned above.
Depending on what comes out of the Federal Reserve meeting Tuesday, we could really see some interesting things happen with the dollar and gold.
Gold and Sovereign Debt
No comments:
Post a Comment