Recently by Robert Wenzel: The New Soviet Union Is America
First was word that Alan Greenspan was advising John Paulson to buy gold for his hedge fund.
Then you have former Plunge Protection Team member, Phillipa Malmgren, warning on inflation.
Then you have a Council on Foreign Relations member, Benn Steil stating that gold as the world currency is not science fiction anymore.
Now, I’m hearing that the hot topic at the United Nations, in the corridors, is not Iran or Afghanistan, but gold. The United Nations General Assembly is in session and friends told me last night and this morning that all eyes are on gold.
Bottom line: We may be having a major shift in the demand curve for gold. The old demand curve was based on only goldbugs buying gold (until serious inflation kicks in). If we do indeed have a new demand curve, the goldbugs are joined by hedge fund managers and even more important the international elite. This moves the demand curve much higher, and I don’t think there is a forecast out there yet reflecting how high this demand curve may have moved.
©2010 Economic Policy Journal