During Tuesday’s summit between Brazil, Russia, India and China (BRIC) at Yekaterinburg, in Russia, Arkady Dvorkovich, a top economic aide at the Kremlin expressed a need for a cautious approach to changing the system of the global reserve from over dependency on the U.S. Dollar.
The statement seems clear enough, take a cautious approach, but none-the-less it’s time to remove the U.S. Dollar as the world’s dominant reserve currency.
While the debate continues about whether to use a basket of different national currencies or to create a new super-national currency, this will all lead to a certain degree of uncertainty about the dollar’s future role - or for that matter, the future role of any major currency. So our question at Shelter Offshore is: “what about gold instead?”
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We have been relatively vociferous of late about the state of the British economy, the state of the British government and the overall feelings of negativity and depression that are rising in the UK. Please forgive us for we are not normally politically motivated, but we have been reacting to the strong sentiment we’re hearing from increased numbers of our British readers.
And Britons are not alone in being aware that they are facing the very real prospect of unprecedented and frighteningly bad economic times. All across Europe and on the peripheries of Europe there is unease about the state of nations’ economies. And according to some of the most senior analysts at Citigroup, if the efforts that governments are currently committing to to drag their nations out of economic meltdown fail, we could enter: “a downward spiral into depression, civil disorder, and possibly wars.”
So, could gold sell for up to two thousand dollars an ounce? Again, the analysts at Citigroup believe that this is possible as the gamble that governments are currently taking could either fail and lead to the aforementioned downward spiral of depression, or result in a resurgence of inflation - with both outcomes likely to cause a rush for gold.
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Gold is reaching new highs following a fear driven sell off on the world’s stock markets, analysts predict gold could go higher…
More positive news from the gold market as current economic sentiment has every investor worth their salt buying gold…
No matter whether the stock market continues to dip and buck, safe haven investors are holding firm on gold…