12 November 2010
The head of the World Bank suggested gold be used as a reference for currency values, not as money itself. This is entirely different. What virtues could gold bring to the monetary table?
- Gold is internationally accepted and held by central banks.
- The days when central banks implied they were going to sell their holdings and assisted the gold price to fall have passed. Central Banks are either holders or buyers of gold now.
- Gold is not vulnerable to a printing press.
- When economic decay sets in gold is not affected.
- Gold is not vulnerable to individual government action except within the Jurisdiction of that country.
- With national interests overriding international interests, international gold will remain respected money when currencies fail.
- As such in the international arena, gold's value will reflect the value of currencies, whether governments like it or not. As such a currency can be devalued or revalued against gold when comparison to another currency is inadequate [such as the dollar being valued against the euro - with both suffering one form of monetary decay or another]........read in full