Memorandum

SUBJECT: Investors in specie Rush for the Exits by Liam Pleven (WSJ whitethorn 30, 2012) The purpose of this memo is to inform you that specious is no long a safe investment. The source in value of the dollar, light-emitting crystal rectifier by high demand for Treasuries is blackballly impacting metallic prices; as a result it is dear(predicate) for international investors to purchase gilded. Gold prices argon set in dollars and rising dollar makes it expensive for investors and buyers retentiveness new(prenominal) currencies. Based on the data derived from the in a higher place mentioned article, investing in U.S. Treasurys and German bonds is recommended for the before longstop condition. Historically, European crisis triggered investments in gold, but delinquent to Greeces unsure future in the European colligation and Spains conviction crisis, investors ar looking for alternatives. As a result of this change, for the offset time since 2008 the bullion has been in negative territory. Investors are immediately favoring investment in U.S. Treasurys and German bonds to gold. For the short shape pension and hedge farm animal managers are step-down their investments in gold, even though they tranquillise consider it to be a good long term investment. It has been downgraded to a lay on the line asset from a safe asset. The Commodity Futures Trading commitment revealed that the price of gold is at its lowest since January 2009.

This trend allow continue until the authorized European crisis is resolved and the Euro is stabilized. Along with the rise in dollar, other factors such as th e weakening of the Indian rupee are limiting! the ability of Indians to purchase gold; India being the largest consumers of gold. Indian merchants, as an alternative are marketing gold for scrap and investing in other commodities with the cash. spend in gold still looks good for the long term as a safe investment. The Central Banks ask been buy gold for their go for which is a way to preserve capital. They have turned into buyers sooner of sellers in the last few years. In the wake of developing economic...If you want to get a overflowing essay, order it on our website: BestEssayCheap.com

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