Back in vogue: gold.
We’ve known it was coming. We’ve seen the writing on the wall for a long time. We’ve told you to buy gold for years in Inside Investing Daily.
Gold is the only real currency left. The euro is on its way to oblivion… the greenback has lost 98% of its value since 1913, and the yen’s value can hardly be slashed anymore.
And world governments are taking note, buying up five times more gold in 2011 than in 2010.
And now gold prices have climbed 15% in just a few weeks.
Probably the most interesting story I’ve read in a while…
And Indian company has launched a cash machine that dispenses gold and silver coins. From the BBC:
Backers say the automated teller machines (ATMs) will be a “one-stop shop for buying medallions, coins and jewellery”.
They hope to cash in on the insatiable demand of Indians for jewels and precious metals.
In all, 75 ATMs are planned for retail centres, temples and airports.
One is already operating in Mumbai. This idea isn’t in response to the erosion of fiat currencies… but rather the huge market in India.
India “consumes” 900 tonnes of gold each year. At $1,740 an ounce, that’s a $55.2 billion market. India is the largest consumer in the world.
These machines should catch on, and quickly. India’s Diwali festival started yesterday. The “Festival of Lights” is the like opening day for gold buying in India. After the festival is wedding season – and folks buy huge amounts of gold.
This could keep gold prices high, no matter what the global markets do… at least until the end of the year.
