Gold Backed Bonds for Europe?

With continued turmoil in global markets, today King World News interviewed 40 year veteran Don Coxe, Global Strategy Advisor to BMO ($538 billion in assets).  Coxe shocked KWN by saying that Europe is actively working to introduce gold backed bonds.  He said, 

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“They would have the security of gold.” Coxe stated we could see this take place “within the next three months ... because this crisis is developing so fast.” Coxe also discussed the possibility of an emergency Fed meeting, but first, here is what Coxe had to say about the spectacular gold rally which took place on Friday:  “First of all, a rally like this, you know a huge amount of it is short covering.  The short positions had been building up on this.  We were having one of the highest short positions on the gold futures that we’ve seen in a long time.”

Please click here to read his comments in full.

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Comments

[Gold Bug]

But will these gold bonds be "paper" gold or "real" gold . If they are created buy one and then see if you can get the real stuff back in exchange for your bond certificate ., I doubt you will. I am suprised JP Morgan has not already done this ; they seem to love churning out paper backed by a mirrage.

[Gold Prices]

If its not real gold then its a non starter in our view