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Miles Franklin Q&A
Thursday, March 5, 2015 3:43
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from Miles Franklin:
Q: I’m curious to know, if the Euro disintegrates, will this be bullish or bearish for Gold, or will TPTB be able to just keep on pushing the price down, as we’ve been seeing the last three years? Thanks and regards,
A.J.
David Schectman’s Answer:
You could build a bullish or bearish case for gold. The bearish case would point that with the failure of the euro, wealth would pour into the dollar, which can be negative for gold. Or, you could build the case that if the euro fails, it will demonstrate the danger in all fiat currencies and open the floodgates to a renewed gold bull market. Confidence is the key ingredient in valuing currencies and when it wanes, money flows into the safety of gold.
