November 9, 2009 - Here’s what the Financial Times had to say. “Gold prices on Tuesday surged to an all-time high after India’s central bank bought 200 tonnes of the precious metal, swapping dollars for bullion as the country’s finance minister warned the economies of the U.S. and Europe had ‘collapsed.’ India’s decision to exchange $6.7 billion for gold equivalent to 8% of world annual mine production sent the strongest signal yet that Asian countries were moving away from the U.S. currency.” (Emphasis added.)
Have the economies of the U.S. and Europe really “collapsed”? As I sit here at my desk in Pittsburgh, I would not exactly say that the U.S. economy has collapsed around me. OK, so the economy isn’t booming, either.
Just yesterday, I saw that consumer powerhouse Johnson & Johnson foresees a long, continuing economic slump. J&J anticipates a slow recovery at best, contrary to the optimism of its namesake “No More Tears” brand. J&J management evidently believes that things will stay tough out there. And as if to add to the predicament, J&J is laying off about 8,000 employees.
Economic collapse or no, the point is that Indian gold purchases from the IMF are supporting the gold price. And the IMF has another 203.5 tonnes of gold yet to sell. FULL STORY
