Greenspan: Gold Rally Signals Move Away From Paper Currencies (Duh)Submitted by Michael Nystrom on Fri, 09/11/2009 - 12:06
Greenspan, master of the obvious, (now that he is out of office):
Sept. 9 (Bloomberg) -- Gold prices that jumped above $1,000 an ounce this week are signaling that investors are buying metals to hedge against declines in currencies, former Federal Reserve Chairman Alan Greenspan said.
The gains are “strictly a monetary phenomenon,” Greenspan said today at an investment conference in New York. Rising prices of precious metals and other commodities are “an indication of a very early stage of an endeavor to move away from paper currencies,” he said.
The price of gold has jumped 13 percent this year as rising government debt coupled with declines in the dollar spurred demand for the metal as a haven. Silver, platinum and palladium also gained.
“What is fascinating is the extent to which gold still holds reign over the financial system as the ultimate source of payment,” Greenspan said.
Fascinating, Alan, Fascinating. Now why don't you tell us something we don't know? Or maybe something we do, like who is causing the "strictly monetary phenomenon" that is causing gold to rise?