Saving Gold is A Great Hedge for Futures ?

Hello folks, world safe haven currency The U.S. dollar is a fiat currency, meaning that it is backed by the full faith and credit of the United States. While the U.S. still remains the most credit-worthy nation on Earth, its credit worthiness is being put to a test.

The proof is in the pudding. At the beginning of 2009, the yield on the 10-year Treasury note was approximately 2.4%; today, just six months later, the yield is just about 4%.

A nearly 160 basis point move in just six months is huge in the Treasury market. It means that the U.S. Treasury has to sweeten their terms to continue to stimulate demand for U.S. securities.

Treasury buyers, mainly China, need to be induced to continue buying U.S. debt - an implication that Treasuries may be losing a little luster. As the U.S. continues to print more and more money to stimulate the economy, this trend is likely to continue.

In a market littered with many uncertainties, gold shines as a safe haven. The entire global economy is suffering from an unprecedented global credit crisis. Another small hiccup could send gold soaring. A chance to protect your portfolio from this serious threat should be investigated.

source: investopedia