Cover of MoneyWeek magazine issue no 512

Bernanke's bombshell

12 November 2010 / Issue 512

The Fed's money-printing binge

PLUS:

  • The best bet in online gambling
  • The new bubble in tech stocks
  • EMI – the worst deal of the boom years?

Excerpt

Why we still back gold

When we first started talking about gold in MoneyWeek back in 2001, no one was remotely interested. One of my closest City friends told me to stop embarrassing myself with my odd obsessions. Gordon Brown cared so little about the metal that he sold 400 tonnes of it at prices knocking around 20-year lows with, it seems, almost no thought at all.

Today, everyone is interested. Look at the most-read list on the back of the FT from Wednesday: two of the five most popular stories were about gold. And the most amazing thing? One discussed comments from the president of the World Bank, Robert Zoellick, in which he suggested that gold should perhaps from part of a new “co-operative monetary system”.

Yes, one of the world’s top financial officials appears to fancy the return of a mini gold standard, or at least a system that “references” gold as it goes.

So now that everyone else gets gold, and now that it’s risen going on seven-fold since we bought it, is it time we changed our tune? Should we sell? We think not.

• Read the full editor’s letter here:
Why we still back gold

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