Sunday, September 25, 2011

You Can Call Him Sparkles

Many investors have turned bullish on gold, helping it reach a record high above $1,900 an ounce last month. Count real estate mogul/reality TV star Donald Trump as one of the believers.

Trump is even accepting gold as a security deposit from the latest tenant in his building at 40 Wall Street in New York City, The Wall Street Journal reports.

The tenant is precious-metals dealer Apmex, and it is giving Trump 96 ounces of gold, worth about $174,000. The payment is being made in three bars of gold, each about the size of a TV remote control device.

Donald Trump
(Getty Images photo) Trump, who owns some gold in his personal investments, views the deal as a statement of opposition against President Barack Obama’s economic policies.

"It's a sad day when a large property owner starts accepting gold instead of the dollar," Trump tells The Wall Street Journal.

"The economy is bad, and Obama's not protecting the dollar at all. . . . If I do this, other people are going to start doing it, and maybe we'll see some changes."

Some gold bugs anticipate huge, multi-year gains by the precious metal. Dylan Grice, a global strategist at Societe Generale, says it may hit $10,000, as its price catches up to the surging U.S. money supply.

“There is a demand for an honest currency,” Grice writes in a report obtained by Bloomberg

For the record, that $174,000 deposit is now worth about $150,000. Woops, shoulda' been reading TOF Don.

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