Uncle Sam: Big Believer in Gold
Brett Arends published an excellent article on MarketWatch today, revealing that US Treasury officials have no intention of selling gold reserves. As one Treasury spokeswoman told him: “Selling gold would undercut confidence in the US both here and abroad, and would be destabilizing to the world financial system.”
“Grab any Wall Street trader in a bar, or any portfolio manager in his office, and he’s likely to tell you gold is finished.
It’s silly, nothing more than a shiny metal, a substance with little use and little real value, a ‘barbarous relic,’ and the stuff of nothing more than superstition. Only a fool would own any gold in his portfolio. Right?
After all, its value has plunged by $500 an ounce in the past year, and $100 just in the past month. Gold hasn’t even rallied during the budget crisis: So much for its ‘Safe Haven’ status.
There is just one nagging problem with this story line. One group of people disagrees. And I am not talking about wacko gold bugs in Arizona (‘the ex-husband state’) with tinfoil on their heads.
I am talking about the people running the United States Treasury. They remain firm believers in gold. Big-time.”
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Good article….