Donald Coxe Says Gold Is Taking Centre Stage Again

Noting that individual-investor gold demand has ramped up, Coxe predicted that gold is now assuming its place as a store of value. The three major currencies in the world won't recover from that shift.

"This month, we advance the thesis that none of the three major tradable currencies will regain its role as a prized store of value. Gold is moving from the shadows, where economists and politicians had consigned it, to center stage" Coxe counseled.

"What we believe is unfolding is a rush into gold by individual investors who look at the astronomic growth in financial derivatives-particularly collateralized debt swaps-and government deficits at a time when the effects of demographic collapse are finally being understood."

Some financial experts estimate the supply of outstanding financial derivatives could be in the $70 trillion range, dwarfing the combined value of money supplies and debts. Because the total value of gold is so miniscule, it cannot be any real help in stabilizing global finances. Nevertheless, Coxe observed "it can be a haven for investors seeking to protect themselves against an implosion of majestic proportions."

‘We believed gold should be a significant component in most high net worth wealth preservation programs, and in most endowment and pensions funds," he advised.

He pointed particularly to European individual demand.