Forex Race

Gold, silver continue rally in uncertain times

Advisor.ca |

In Brief...

It will, however, continue to be an alternative currency to the U.S. dollar as investors take a flight to safety, according to experts at BMO Harris Private Banking.. "Gold is not trading on inflation expectations, it's really trading as an alternative currency to the U.S. dollar," said Paul Taylor, chief investment officer, BMO Harris Private Banking. And the biggest loser of value has been the U.S. dollar. It's no secret that the euro is in bigger trouble now than any time since it was formed in 1999. "I do think there's some evidence that folks are seeing the real cracks in the foundation of the euro here and they are hoarding silver," said Herring, adding that among these may be investors who think that gold has already made too much of a move or that the price of an ounce of gold is too high. These countries would revert to their pre-euro currency at a pre-set exchange rate, and be allowed to devalue that currency before being allowed back in at some future date.. "Right now, the euro-zone and the euro banks are in somewhat of a denial," said Ablin.

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