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Dear Friend of GATA and Gold:
Erste
Group Bank's new report on gold as an investment and currency, written by
Ronald-Peter Stoeferle and published today, may be
the most comprehensive and profound of its type. Its major conclusions
include:
-- Negative real interest rates are the main driver
of the gold price and will continue to be powerfully supportive.
-- The arguments supporting a return to some form of
gold standard are strengthening.
-- Government debt burdens could be sustantially eased by a higher gold price.
-- There is no "bubble" in gold, as the
public is hardly invested in it and has little interest in it.
-- Increasing dependence on government transfer
payments for the public's income works against restoring solvency to
government.
-- Many paper pledges of gold cannot be fulfilled by
real metal, a point credited to GATA.
The report concludes, in part:
"Given that the majority of debt has neither
been written off nor paid off but simply transferred, the problem of
excessive debt is still waiting to be resolved. There has been no
deleveraging, only an adjustment of booking entries from the private to the
public sector. The quantitative easing has left monetary stability short on
credibility, and it will be very difficult to remedy this situation. In this
fragile environment gold will continue to thrive."
The Erste Group Bank
report has been posted at GATA's Internet site here:
http://www.gata.org/files/ErsteGroupGoldRepor...-07-04-2011.pdf
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Join GATA here:
Gold Rush 2011
GATA's London Conference
Thursday-Saturday, August 4-6, 2011
Savoy Hotel, London, England
http://www.gatagoldrush.com
Support GATA by purchasing gold and silver commemorative coins:
https://www.amsterdamgold.eu/gata/index.asp?BiD=12
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Or a colorful poster of GATA's full-page ad in The
Wall Street Journal on January 31, 2009:
http://gata.org/node/wallstreetjournal
Or a video disc of GATA's 2005 Gold Rush 21
conference in the Yukon:
http://www.goldrush21.com/
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