‘Smart Trade Group’– [Gold- Still The Smart Choice]

Added: (Mon Jun 29 2009)

Pressbox (Press Release) - ‘Smart Trade Group’ is more bullish than ever on the yellow metal.

“Smart Trade Group” sources say that gold is still the Asian-based brokerage’s weapon of choice in the battle to preserve wealth in the face of massive monetary and fiscal expansion aimed at tackling the global recession.

In an email to clients, the firm’s chief analyst suggested that despite gold’s failure to hold over and above $1000 twice this year, this may owe more to deliberate short selling of “paper gold” by bullion banks determined to keep the price of gold lower in order to make fiat currencies – represented by the bond market – appear more attractive.

This, said one of the “Smart Trade Group” sources, is unlikely to remain the case as, slowly but surely, investors are beginning to express deep misgivings about the viability of the long-dated US treasury bonds which, until recently, found favor with investors seeking to preserve their wealth.

The source suggested that further problems with the bond market are likely to see the US Federal Reserve commit to additional purchases of US Treasury bonds as investors lose their appetite for what are increasingly being seen as assets that simply cannot perform when the issuer, the US government, is creaking under the burden of colossal debt.

Gold continues to find favor with investors in Asia where gold is seen by most as the ultimate store of value.