Buy Gold ahead of QE3

Societe Generale is “enthusiastic on gold” — so much so that in their latest cross-asset strategy report, they call “buy gold ahead of QE3″ their number one strategy, saying it’s “the perfect asset to benefit” from additional loose monetary policy.
In the report, SocGen discusses the historical relationship between the price of gold and the U.S. monetary base. The SocGen team writes that “if gold catches up with the increase in the monetary base since 1920 (as it did in the early 80s), its price would rise to USD 8500/Oz,” adding that just “to close the gap with the monetary base increase since July 2007, gold would have to rise to $1,900/oz, assuming full transmission from the monetary base increase to the gold price.”
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Emerging Markets Central Banks Hoarding Gold

There were strong buying from the central banks of some emerging markets of Gold , particularly from China Mexico and The Philippines , these central banks tend to use their large foreign exchange surpluses and prefer to hoard gold instead of the US Dollars or other fiat currencies

Jim Rogers : Going Back to The Gold Standard is unlikely

Question : Are We Going Back To The Gold Standard ? 

Jim Rogers : I think it's unlikely. I know there are lots of people who would like to return to the gold standard, but the problem with the gold standard is that it always had problems, too. Politicians can always figure out ways to try and cheat us, the poor citizens. - in MoneyNews