Friday, July 10, 2009
The interest rate cycle to start over.
As well as the intrinsic value offered by soft commodities and minerals versus devalued currencies, over a five year horizon the world would face supply issues, he said. â€˜A lot of commodities are now trading at below production prices and we are facing further pricing pressure â€“ a lot of the easiest sources have been fully mined, we are facing deeper extraction, mines in less stable regions and in areas where people want a fair shake â€“ there is not going to be a return to the old days. Both themes came together in gold pricing over the long term, which had both intrinsic and relative value as â€˜the most liquid currency in the worldâ€™ and its resistance to anything more than the most short-term price manipulation.