Bernanke Puzzled by Gold Rally – America Puzzled…by Everything

I found all of these articles interconnected and interesting. Maybe you will too.

Bernanke Puzzled by Gold Rally:

“Federal Reserve Chairman Ben Bernanke says he is puzzled by the skyrocketing price of gold.

“I don’t fully understand movements in the gold price,” Bernanke admitted Wednesday during testimony to a House Budget Committee hearing.

“Other commodity prices have fallen recently quite severely, including oil prices and food prices,” Bernanke said. “So gold is out there doing something different from the rest of the commodity group.”

Gold prices hit an all-time high on Tuesday above $1,250 an ounce on fears that Europe’s debt contagion could lead to a double-dip recession.”

Also found this tidbit at BMO Capital Markets with the headline “GO TO CASH – IN PLAIN ENGLISH”

….”We see credit crisis II as just beginning. Few markets are untouched. Few signs of optimism can be seen. We are now at the tipping point when the crisis becomes more obvious. Markets will get more dangerous during this phase.
….We advocate a zero weight toward equity, and that investors convert their equity positions to cash.

From Mish Shedlock at Mish’s Global Economic Forecast

“Without directly saying “go to cash”, I see no reason to have net long exposure here. Except perhaps for some exposure to gold, if you are not hedged, cash is the safe option.

Finally, if you do not know how to hedge, now is not the time to learn.”

Make’s ya think huh?

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