“This is gold, Mr. Bond. All my life I’ve been in love with its color … its brilliance, its divine heaviness.”
Gold prices recently hit a four-year low, while stock prices seem to hit a new record almost weekly. So which is the better investment today?
Before answering that question, consider the latest worldwide trend. “Repatriating” gold is becoming as fashionable as quantitative easing and stimulus spending.
Germany’s central bank started the trend last year with its decision to return some of the country’s gold home from vaults in the U.S. and Paris. It was followed by a campaign called “Bring Our Gold Back Home,” but Germany has since backed off on plans to repatriate more gold.
Netherlands has already moved 122 tons of gold back home. And Switzerland voted yesterday on its “Save Our Swiss Gold” initiative, which would force the Swiss National Bank to buy gold every time it buys euros, which it has done to curb the rise of the Swiss franc.
If the initiative were to pass, Zerohedge noted, “it will undoubtedly set off alarm bells throughout the gold market, as yet more physical gold will need to be repatriated and another sizeable, price-insensitive buyer will enter the marketplace.”