Friday, February 12, 2016

JP Morgan analyst admits people having more confidence in gold than in paper money

Feb. 11 was a watershed day for gold as the metal rose more than $60 at its peak to have its best single day in seven years, and the second highest single day move in history.  And according to many analysts, including one over at JP Morgan, this rise is not an anomaly, and is showing that people are finally losing confidence in paper currencies and rushing as fast as they can into gold.

There is a serious credit contraction underway, I think [Yellen] should acknowledge that. I think she has to look at the capital base being wiped off the banks in this downdraft and equities: that's not supposed to be happening right now. They're supposed to be bulletproof, and oh, by the way, gold at $1,200 an ounce, what does that tell you? It tells you that in a flight to quality, in a safe haven, people have more confidence in gold than in bank deposits or paper money. I think things have gotten out of control." - Zerohedge
This assessment is certainly true in both China and London where some bullion dealers experienced a rush into gold so great, people were lining out around the block just for the chance to purchase dwindling supplies.
London-based ATS Bullion added it had been inundated with orders for the past week. The firm has sold 4,000 gold bars and coins since February 1, a 40pc rise on the same period a year ago when it sold 1,500.  
"It's been crazy - it's been the best week since 2012. We've had people queuing round the block," said Michael Cooper of ATS Bullion, a family run firm that trades online and also from an outlet in the West End. - Telegraph


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