Friday, September 16, 2016

A Significant Upward Revaluation 
Of Gold Is Now On The Horizon
Incrementum's Ronald-Peter Stoeferle sees an upward rise in gold prices relative to the U.S.$ .. identifies the challenges to central banks on trying to unwind asset purchases & returning to "normal" monetary policy management, pre-financial crisis style .. "Will the Fed be able to successfully return to monetary normalcy without affecting asset prices? Is the economic recovery self-supporting and is it able to withstand tighter monetary policy?… Asset prices are increasingly fragile, and depend on ever more expansive monetary policy .. Similar to the legendary Damocles, whose life was threatened by a sword held up by a horse’s hair, a decline in asset prices nowadays represents a latent threat to the fragile economic recovery .. We are firmly convinced though that systemic problems will increasingly lead to a critical reassessment of the current monetary order. In the event of such a paradigm change, a significant upward revaluation of gold seems highly probable."
LINK HERE to the analysis

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