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J.P. Morgan report likes gold for many of GATA's reasons
1:40p ET Saturday, November 29, 2008
Dear Friend of GATA and Gold:
A report on gold and gold stocks issued this week by J.P. Morgan Securities Ltd. is positive for many of the reasons GATA has brought to your attention, though of course while it describes central bank involvement in the market the report does not quite frankly acknowledge the intent to suppress the price. An excerpt from the report:
"Gold has been competing with the dollar as a relatively safe haven for investors as stock markets have fallen. Initially, gold and the dollar performed well, but it's wrong to compare dollar strength with the performance of the dollar-denominated gold price since, as the dollar rises, it slows the upward movement of dollar gold. In the less volatile Swiss franc, gold achieved a new all-time high about one month ago. Until the fear-driven flows into the dollar slow, the dollar could continue to rise, but gold's improved visibility may be preparing gold for strength into the year end. We would like to see gold perform in absolute terms, but we are very happy with gold's outperformance of the S&P 500. ..."
You can read the report here:
http://www.gata.org/files/JPMorganGoldReport-11-25-2008.pdf
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
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