THE GATA DISPATCH: Morgan analyst hints at need for unlimited paper gold. May 15th, 2010
Morgan analyst hints at need for unlimited paper gold Submitted by cpowell on 07:53AM ET Saturday, May 15, 2010. Section: Daily Dispatches 10:35a ET Saturday, May 15, 2010 Dear Friend of GATA and Gold: In a research note published this week an analyst for JPMorgan Securities Inc., John Bridges, more or less explains why central banks hate gold -- for its being a competitor with their own forms of money. The analyst, John Bridges, wrote: "A German banker once told us that gold normally trades like a commodity. However, when investors lose confidence in currencies, because the pool of gold is so much smaller than the pool of currencies, demand for gold can effectively become unlimited. We believe the European version of 'QE' [quantitative easing] is generating serious currency worries. ..." That observation hints at why Western central banks and the International Monetary Fund backstop the London Bullion Market Association and the New York Comm