Friday, March 19, 2010

Citigroup (NYSE:C) Analyst: Gold New Currency

Gold New Reserve Currency

Now that gold has gravitated away from it traditional inverse relationship with the U.S. dollar, it leaves people asking what's happening, and accoring to a Citigroup (NYSE:C) analyst, what's happening is gold is being increasingly considered second reserve currency, alongside the U.S. dollar.

As the public gets more and more educated about the consequences of central banks printing a seemingly endless amount of paper money, they understand it will weaken the currency of the countries doing that, increase inflation, and no longer be safe to count on as the primary means of trade.

While the last one has a way to work out yet, there is a growing unease with what the central banks, bank cartel and governments around the world are doing with their currencies.

According to economist and hedge-fund manager Dennis Gartman, this isn't going to be a temporary situation or fad. "The trend shall continue months, if not years, into the future," said Gartman, referring to gold being considered a reserve currency.

Many already believe gold to be superior to any paper currency, but what's new is a growing number of people are seeing the reality of that and are acquiring gold as a place of safety as a result.

Gold New Reserve Currency

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