JP Morgan announced that they support gold and says that it is still not too late for investors to get into the precious metal. They go on to say that the government needs to take certain measures to get back on track and since they have not been taking those measures, gold will continue its climb up.
By Dave Kansas
August 4, 2011, 9:49 AM ET
Wall Street Journal Blogs
As Old Yeller races higher, J.P. Morgan comes out today with a report banging the drum for the barbarous relic.
“We love gold,” J.P. Morgan says. They add: “Many investors may look at the gold price chart with disappointment and assert it’s too late for them to buy. We disagree.”
The bank says that Western governments need to either raise taxes or cut spending or both, and nobody in authority seems ready to take those kinds of tough decisions. As long as everyone’s punting, J.P. Morgan believes gold will keep rising.
J.P. Morgan also points out that South Korea’s central bank recently snapped up 25 tons of gold, joining Mexico, Russia and Thailand as big buyers of the yellow stuff.
In a twist, JPM says gold stocks, which have lagged the surge in gold prices, might be a good vehicle to get into the gold game. They like Goldcorp, Kinross, Newmont and Barrick.
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