Who wrote this article?

Deepak Shenoy, Capitalmind's research team.

Gold is a Reasonable Investment: GW

30 Sept 2009Deepak Shenoy1 min read

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What is "Gold is a Reasonable Investment: GW" about?
What category is this article in?: Commentary
Who wrote this article?: Deepak Shenoy, Capitalmind's research team.
When was this article published?: Published 30 September 2009.
How long does this article take to read?: 1 min read
What topics does this article cover?: Gold

George Washington writes in at Naked Capitalism on whether Gold is a Reasonable Investment.

It’s an excellent compendium of links, articles and opinion on Gold. Some points:

Gold, considered a hedge against inflation, does well in deflationary environments too. And if the environment involves devaluing currencies it goes up - like the purchasing power of gold did during the Great Depression and in the last 10 years.

There’s some evidence that while gold loses some sheen in the early part of a deflationary period, it climbs in the later part; the Yen-Gold chart is provided.

Short term interest rates near 0% are good for gold.

Government distrust - of the type happening in the US (we in India have never trusted our governments) - is positive for Gold.

It’s the currency-of-last-resort, so panics induce buying.

China will buy dips and effectively put a floor on gold prices.