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Foreign Governments Pile on the Gold Reserves

|Includes: Barrick Gold Corporation (ABX), GLD, GOLD

As a follow up on yesterday’s gold piece I’d like to pass on to you an article by Global Resource Alert’s Peter Krauth outlining the entire long term bull case for the yellow metal. The future for the dollar is dark, indeed. Central banks, led by China, are backing off from US Treasuries and the dollar, and are returning to gold as a reserve currency. China has in fact increased its gold holding by 450 metric tonnes over the past six years. Individuals are doing the same, doubling their purchases to 862 million tonnes last year. US budget deficits are already running at the greatest levels since WWII, and a second stimulus package will pour more fuel on the fire. It’s just a matter of time before gold breaks to a new high. To read Peter’s well thought out article in its entirety, please click here .