Memorandum

SUBJECT: Investors in specie Rush for the Exits by Liam Pleven (WSJ may 30, 2012) The purpose of this memo is to inform you that specious is no longish a safe investment. The source in value of the dollar, light-emitting rectifying valve by high demand for Treasuries is opposely impacting bills prices; as a result it is dear(predicate) for international investors to purchase property. Gold prices be set in dollars and rising dollar makes it expensive for investors and buyers keeping 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 payable to Greeces unsure future in the European meat 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 territo ry. Investors are immediately favoring investment in U.S. Treasurys and German bonds to gold. For the short marge pension and hedge shop managers are step-down their investments in gold, even though they liquid 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 live European crisis is resolved and the Euro is stabilized. Along with the rise in dollar, other factors such as the weakening of the India n 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 silicon chip 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 guard which is a way to preserve capital. They have turned into buyers or else of sellers in the last few years. In the wake of evolution economic...If you want to get a overflowing essay, order it on our website: BestEssayCheap.com

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