Quote of the Week

James Grant is a highly regarded financial analyst, author and historian.  As someone who has studied the financial markets for over 40 years he always provides insightful commentary on its dynamics and enjoys a huge following to his Interest Rate Observer (since 1983).  In short when he speaks many listen.  This is what he had to say this last week:

“You look around the world and you see exchange rates are properly disorderly, when you look around the world of lending and borrowing - we are in a regime of price control by another name, so-called zero percent rates and quantitative easing by the world central banks.

We are in one of the most radical periods of monetary experimentation in the annals of money, with a low probability of a favourable outcome.

Given the disorder I see in the world due to monetary experimentation and the very low gold price, you want to have exposure to the reciprocal asset of the paper assets that are the most popular - so gold, to me, is now the conjunction of price, value and sentiment, and I am very bullish indeed.

The recent fall in prices are terrifically vexing but a wonderful opportunity. The reasons for owning gold have not gone away. Gold thrives in periods of turbulence and disorder and uncertainty. I think we have all three of these things."