Big Dumb Bankers Baffled By Gold
I can tell you why gold puts a sour taste in banker's mouths: because it cannot be inflated indefinitely. What surprises me is that they're also against paper gold, which seems to me like a banker's wet dream but what do I know?
Private banking executives, say gold's glittering price tag is or should give their wealthy clients pause.
"We're not really recommending gold right now, just because it's at a level where there are things driving it beyond the types of things (where) that we can add a lot of value," U.S. Trust President Keith Banks said at the Reuters Global Private Banking Summit in New York.
Instead, Banks said gold prices may reflect the surge in demand for gold exchange-traded funds, listed shares that purchase physical gold, and broader worries about government spending leading to rapid price inflation.
"So what exactly is leading to gold at the levels it's at? Your guess is as good as mine," said Banks, who runs the Bank of America (BAC.N) private bank unit.
If these guys can't figure out what's driving gold's awesome performance, we're far more doomed than I initially suspected.