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Gold ETF - "GLD"

Gold ETF - "GLD"

Bank of America-Merrill Lynch continues to recommend gold to its clients.

In its May 21, 2009 report to clients, the bank wrote:  “Gold has long been used as a hedge in times of heightened geopolitical instability, rising trade protectionism, 0% central bank target rates, and both inflation and deflation.

So, when we see headlines like this pop up on our Bloomberg – ‘Ahmadinejad Says Iran Successfully Tests Missile’ or ‘Arms Sent by US May Be Ending Up in Taliban Hands’ in yesterday’s New York Times, we believe it is important that we reiterate our view.

In the interim, we see that the dollar has been shaky in recent weeks, having dropped nearly 9% since early March, and that just bolsters our case for gold.”

5/21/09 Bank of America-Merrill Lynch, “Morning Market Tidbits”.