By: John Fisher
European Central Bank Comments On Gold:
Chuck Butler, President of EverBank Global Markets just sent me this video featuring a clip of European Central Bank (ECB) President, Draghi, and his thoughts on Gold. Ed Steer’s letter this morning features the same clip.
Click here to view the 1:48 video
He had this to say. “While Ben Bernanke would prefer not to discuss the barbarous relic, having noted in the past that “nobody really understands gold prices,” it would seem his European brother-in-arms has a different opinion. When asked this week, by Bull Market Thinking’s Tekoa Da Silva, his thoughts on precious metals as reserve assets (and central banks around the world increasing their allocations), none other than the ECB head himself Mario Draghi explained “I never thought it wise to sell [gold], because for Central Banks this is a reserve of safety.” But Draghi did not stop there, and perhaps enlightened by the farce in Washington this week, the unusually truthful central banker explained, “in the case of non-USD countries, it gives you good protection against fluctuations of the USD.”
Maybe that’s why China, Russia, India, the ‘Stans’ and others continue to import gold at a record pace. As Chuck Butler says, “always follow the money.”
Perspective – since 2/1/2006, Gold is up $125.26% and Silver is up $119.20%! See the chart below: 
All Things Considered – John’s Commentary:
The United States and Western Europe are the real idiots when it comes to monetary policy. The Central Banks that are pursuing a hard-asset backed currency, like those cited above and others, will eventually eat our lunch. Of that you can be absolutely sure. You can’t have it both ways. There is no free lunch – everyone eventually pays.
Action to take: Slow and steady accumulation. Are you frozen – not sure to buy or wait? The best anecdote is to buy in modest increments, consistently, resulting in a full position at an averaged price.
