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Gold made simple!

Once in a while you get an article which explains something in much more beautiful manner than thousand words may say. This follwoing para was found in David Vaughn's newsletter. It explains it self.

“The World's Central Banks Must Keep Buying Gold.” “As central banks around the world consider bolstering their gold reserves, one analyst says their only choice is to buy more. And prices will continue setting records as a result.” "CENTRAL BANKS AROUND THE WORLD ARE SITTING ON MOUNTAINS OF U.S. DOLLARS," Litle explains (Justice Litle is a commodity market analyst & a frequent contributor to the Wall Street Journal & The Daily Reckoning), "While Americans might consider that a pile of assets, foreign leaders can only see it as a giant pile of liabilities." “As he points out, the U.S. government alone faces a $331 billion budget deficit while Americans are sitting on $2.1 trillion of debt.” “The deeper into debt America goes, the less valuable its currency becomes," says Litle. Faced with a large supply of a wasting asset, countries "would be crazy not to shovel it into gold as fast as they can." “Litle believes WE CAN EXPECT TO SEE MORE CENTRAL BANKS ADDING TO THEIR GOLD HOLDINGS IN THE MONTHS AHEAD. And since the world's central banks have such a big influence on the gold price, we can expect the gold price to shoot up as a result.”

Source: http://www.goldletterdv.com/

:) Falkor

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