Credit Deflation Lands in Britain
Credit deflation just hit the UK for the first time on post-war records…
HMMMM… This looks telling.
UK banks will soon be able to post raw loans – rather than securitized loans that have been bundled into asset-backed bonds – as collateral against short-term liquidity aid from the Bank of England.
[Read more...]Asian Gold Traders “Buy the Dips” as Global Devaluation Makes Currency Crisis “Possible”
China’s 2010 Gold Rush
The collapse in India’s gold demand during 2007-09 might seem good reason to question the fundamental strength of gold buying worldwide.
After all, if the world’s No.1 gold buyers can’t keep up with record-high gold prices, who can…?
But the plain fact, as BullionVault first forecast in spring 2009, is that China has overtaken India as the number one private gold buyer this year. The typical Chinese New Year gold rush has already begun (thanks in part to 3% discounts at major retailers), and robust demand looks likely to continue through 2010 if not beyond.
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Speculating in Gold
So gold is now at “fair value� says Bill Bonner, long-time gold bug and my former boss/partner-in-crime at The Daily Reckoning's London HQ.
No, he won't sell yet…if ever…says Bill. But gold's huge under-pricing a decade ago has clearly passed by. Value-hungry investors got their “reversion to the mean,â€? and in the form of 400% gains, too. What one ounce of gold bought 2,000 years ago – a good suit of clothes, in Bill's oft-repeated example – it now matches, if not exceeds in price, here in late 2010.
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