Unstable Financial System Is Bullish for Gold

J. Taylor's Gold, Energy & Tech Stocks
"Quite frankly, I’m glad gold has corrected so sharply, because markets that rise so dramatically higher are inherently unstable. The sharp decline in the price of gold should not have been unexpected. However, as long as policies remain the same—printing money to bail out the banking system—the financial system as a whole will become increasingly unstable and thus extremely bullish for gold. In fact, we are now seeing some of the most extreme changes in the banking industry from a regulatory point of view since the 1930s and none of it in my view is anything but exceedingly bullish for gold in the longer run. The effect of all the changes is to reduce the efficiencies of the markets, which in turn will spell more mal investment and higher prices, especially as long as the U.S. continues its deficit spending for wars and other –non-essential activities." (4/4/08)

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