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From this morning’s piece by David Rosenberg.  The long time gold bull still thinks the yellow metal’s bull market is alive and that prices are headed to $3,000:

“Indeed, the yellow metal is trading less and less like a commodity over time and more like a currency – a currency that is no government’s liability and where no central bank has a printing press.

The Bank of Japan just announced how it has been engaging in “stealth intervention” to weaken the Yen.  The Europeans desperately need a soft Euro to have exports act as an antidote from escalating fiscal drag.  Of course, we saw the Swiss last year throw in the towel on accepting a strong Franc.  In the emerging markets world, there has been no shortage of market-meddling initiatives to soften their currencies.  And in the US, part of the White House drive to bring jobs home – how mercantilist can this be? – necessarily involves sanctioning a “more competitive” currency.

Now we have central banks continuously priming the monetary pumps as well.  If we adhere to Bob Farrell’s Rule #! and then look at what that is going to mean with respect to the ratio of gold price to global currency in circulation, getting to $3,000 before the bull market in bullion busts is, in our opinion, quite easily attainable.”

Source: Gluskin Sheff


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