Adrian Ash

Gold, T-Bonds, and Russia's Tu-160 Bombers

Not sure! Initial coverage Weds pointed to 30-years, but I also saw 7-10 cited on Thurs. WSJ amongst others repeated "long bonds", and FOMC statement www.federalreserve.gov... says "longer-term" -- no? Either way, UK's Bank of England buying 5- to 25-year gilts...which just screwed a new short-dated auction: www.ft.com/cms/s/0/c67...

On Mar 19 03:02 PM Tetrapod wrote:

> Interesting article. Thanks!
> One minor correction: I don't believe the Fed is buying 30-year
> treasuries. Their statement indicated that they were going for 7
> and 10 year issues. If you know otherwise, please let me know :-)
>

Gold, T-Bonds, and Russia's Tu-160 Bombers

Hi Paul: Thanks for your comment, sorry for hiding the punchline. I'm saying that gold offers much more than just a shiny yellow way to try and hedge against inflation. It's clearly political, belligerent even, against anything but the most benign financial backdrop. Central-bank purchases never make good news. (More here: goldnews.bullionvault....)

Reminds me of gold's "mistaken identity" c.2002-2008, when it was confused for a happy-hedge-funds leverage play (see John Hathaway writing in mid-06: www.tocqueville.com/ar...). Strong buying by China/Russia would mean they're hunkering down. Announcing it would be saber-rattling, not dollar diversification.

What can me and you do about it? No idea. Lots of analysis for surviving deflation/inflation right now (see SocGen's James Montier this week: goldnews.bullionvault....). But I've yet to read any serious analysts beyond Marc Faber wondering how to defend wealth against war or revolution.


On Mar 19 03:16 PM paultaut wrote:

> Adrian: I like your Articles. Back on Sept. 7th 2008, you wrote about
> "Super Dollar?". I said I checked your Credentials.
>
> The Article above drew my attention because I couldn't/can't figure
> out what the Rumor is...

Gold, T-Bonds, and Russia's Tu-160 Bombers

Paul - we're not a tipsheet, BullionVault is a live physical gold market where private investors buy/sell in real time. I'm not in paper (either way) but I am in gold...