With gold prices soaring to a high of $540.2, the presumptive thought in every investors mind...“Why the sudden appeal of gold?”
Paul Kasriel, chief economist of Northern Trust, gives us the Occam Razor’s principle or “The principle of parsimony”...where “one should not increase, beyond what is necessary, the number of entities required to explain anything”...in short, it all boils down to a worldwide phenomenon called NEGATIVE REAL INTEREST RATES!
Mr. Kasriel sums it up with...``global investors are losing faith in, as Jim Grant calls them, faithbased paper currencies as a store of value.”
Quite a legacy indeed for outgoing US Fed Chief Alan Greenspan.
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