U.S. Holds 27% of World’s Gold

The argument for holding gold has just been reinforced by the Fed’s recent $600 billion quantitative easing (QE) package because it pushes the dollar firmly onto a downward path and raises the risk of inflation. Words: 342

So says David at www.topforeignstocks.com in an article* which Lorimer Wilson, editor of www.munKNEE.com, has reformatted into edited […] excerpts below for the sake of clarity and brevity to ensure a fast and easy read. (Please note that this paragraph must be included in any article reposting to avoid copyright infringement.) David goes on to say:

“QE devaluates the currency, so almost all commodities will be beneficiaries as people start to switch from financial assets to commodities, something they feel more tangible as the money printing continues,” said Standard & Poor’s Equities and Metals analyst Leo Larkin.

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According to London-based GFMS, the world’s foremost precious metals consultancy…, the total officially declared gold holdings at the end of 2009 was 30,623 tonnes with the International Monetary Fund, the U.S. and China holding  10%, 27% and 3% respectively.

1) The Top 10 Gold Holders

Click to Enlarge

2) The Top 10 Forex Holders

Source:  The Official Sector: Gold Rehabilitated?, A presentation by Philip Klapwijk, GFMS Ltd.

Some of the key predictions made by Philip in the presentation are:

• “Sovereign debt crisis will not last forever
• Alternative investments may be attractive, e.g. Chinese government bonds
• Gold price will eventually change direction
• Off-market purchases [of gold] may facilitate ‘transfer’ of gold bullion from West to East

U.S. sales [of gold are] unlikely… ” [Do you own your fair share?]

 

 *http://topforeignstocks.com/2010/11/06/top-10-gold-and-forex-holding-countries/

Editor’s Note:

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