The Gold Report

I thought this was worth sharing. It is nothing new to goldbugs, but caught my attention when I noticed it was Citigroup making the statement. We are buying gold stocks on dips such as occurred on Tuesday, and have also been doing very well with international ETFs such as ILF (Latin America) and FXI (China). These funds will continue to do well as long as the Fed keeps intervening to prop up the economy. However, we have set stops and will keep a close eye on the markets as a declining U.S. economy will drag down the foreign ETFs with it. In the meantime, this has proved to be a good diversification strategy and has provided some of the best returns in our entire portfolio...

Here are the key parts of the Citigroup report...Hello U.S. media? Anyone home?

In a fresh report, Citigroup said:

The central banks have been forced to choose between global recession or sacrificing control of gold, and have chosen the perceived lesser of two evils.

We believe that the policy resolution to the credit crunch will take the form of a massive, extended ‘Reflationary Rescue,’ in a new cycle of global credit creation, and competititive currency devaluations. This could take gold to $1,000 an ounce, or higher.

The report’s authors, John Hill and Graham Wark, said that the avalanche of central bank bullion sales earlier this year was “clearly timed to cap the gold price.”

Jason Hamlin, www.GoldStockBull.com

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