What impact will the G-8 and G-20 have on gold?
The meeting this weekend of the G-8 and G-20, we expect, will have no more effect than past ones have had. Encouraging statements will be made about good intentions, but with no believable plan of action. As now is the time for them to act, the climate of uncertainty and fear will continue to persist. Unfortunately, Politicians have other matters on their agenda and don’t perform well, until a crisis is upon us. So we will have to wait for that crisis. Crises then tend to appear out of nowhere, hitting markets hardest and producing differing levels of panic. To emphasize the point, markets have looked to governments to calm them when financial uncertainty persists. Government actions to date, taken inside the financial markets have not turned the global economy back to strong growth in the last three years. Banks have succeeded in softening most of the new regulations that will apply to them emasculating their effectiveness. Political considerations often precede effective reformation
