05/18/09 Baltimore, Maryland “The Dubai Multi Commodities Centre (DMCC),” reports Byron King, “has finished building a state-of-the-art precious metals vault, with world-class tracking and security systems. Think Fort Knox, but in the desert and without the trees and pretty landscaping we see in the hills of Kentucky.
The new DMCC… as understated as you’d expect
“The new vault will become the home for the exchange-traded fund (ETF) of Dubai Gold Securities. Also, ‘It’s a natural home for the central banks in the region to store their gold in Dubai, rather than in London, where they have typically held their gold,’ said a Dubai-based gold dealer INTL Commodities DMCC’s CEO Jeffrey Rhodes. Yep. ‘Natural home.’ (Margaret Mead, call your office!)
“A DMCC official stated that the new vault will be used to store precious metals associated with precious metal-based ETFs that are on the drawing boards and scheduled for launch later in 2009. This can only add to worldwide demand for gold and silver, especially from the traditionally gold-friendly Middle East.
“The bottom line: When the American people realize that the dollar is in for another round of inflation, they’re going to look for a way out. When people envision the future decline in their purchasing power, we’ll see a rush for the monetary exits. It’ll be the ‘Gold Panic’ of 2009, or 2010 or 2011… whichever year gets the naming rights.”
Ian Mathias
Ian Mathias is the managing editor of Agora Financial’s Income Franchise, where he writes and researches about retirement, dividend and fixed income investing. Much of his work is featured in The Daily Reckoning and Lifetime Income Report – Agora Financial’s flagship income investing advisory.
Previously, Ian managed The 5 Min. Forecast, a fun, fast-paced daily look into the future of global markets and macroeconomics. He’s also worked in public relations, where media outlets like Forbes, AP, Yahoo! and MSN Money have syndicated his writing. If he’s not at work, you’ll probably find Ian on a bicycle, racing up and down the “mountains” of Baltimore County. Ian has a BA from Loyola University in Maryland.
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all that gold sitting in one location is certainly a temptation for ??? imagination so how can I spend anything held there?
UAE is a dictatorship where labor contracts are routinely violated. You would be a fool to trust reserves held in that country. Remember Godfather Part II?
just like a TV evangelist: send your money to god but address it here to me in Shreveport, Louisiana
what moron would keep his gold there?