Central Banks Continue to Buy Gold

Zero Hedge: The latest development in the gold bubble saga, and one which will likely cause the precious metal’s price to spike even higher, comes from the tiny island of Mauritius which according to Dow Jones has purchased 2 metric tons of Gold from the IMF for $71.7 million. The price works out to approximately $1,115 per ounce. More as we get it.

My comment: More and more countries, investors, and individuals are protecting themselves from the runaway inflationary policies of the US government. You have to at this point begin questioning the sanity of Congress with their ridiculous trillion dollar healthcare scheme (check out the debt meter in the upper right of my blog it is getting ready to cross $12 trillion) and Bernanke coming out yesterday and saying he doesn’t see any bubbles forming.

Federal Reserve Chairman Ben S. Bernanke reiterated Monday that the central bank now knows enough to be worried about asset bubbles.

He just doesn’t see any in the U.S. at the moment despite some investors’ concerns about stock market valuations and the still-ravenous global appetite for Treasury securities.

In a Q&A session after a speech in New York, Bernanke at first channeled his predecessor, Alan Greenspan, on the subject of bubbles: Bernanke said it was "inherently, extraordinarily difficult to know whether an asset’s price is in line with its fundamental value or not."

And he added: "It’s not obvious to me in any case that there’s any large misalignments currently in the U.S. financial system."

John Polomny
The Real Deal