http://www.youtube.com/watch?v=z5MVsm2cpc0
http://www.youtube.com/watch?v=od6-8MizZKE
Interesting video clips, if a gold standard was at all possible gold would have to be revaulued and allot of money would be made.
A lot of money would be made? Don't you mean
lost. Gold would simply retain it's purchasing power relative to fiat! No money would be made!
Been a while since I posted on this thread, due the death of a close friend in September I haven't been able to keep up with everything I wanted to post.
Some updates: My small 10 ounce gold short around the 1249 area got taken out, as you can imagine. Not much in the way of losses, it was only a small speculative trade as stated originally.
Still holding longs in ASX:XGD companies of my choice (index of which just topped 8000, bought in 6000ish) and also a long in ASX:CXC CDI accumulated between $19 and $20.
For those who are wondering exactly what caused this latest run in the price of gold, I have my own suspicions:
Here is a quote from well known (to the bugs) gold-bug "ANOTHER" written almost exactly 13 years ago, Oct 09 1997:
One last note: No form of paper wealth will survive the financial crush once the CBs stop selling!
NOTHING!
From
http://www.usagold.com/goldtrail/archives/another1.html (although I am sure that most of the bugs here know ANOTHER, FOA and FOFOA well).
An interesting comment in and of itself, however if you know the context it is quite insightful.
Anyway, what does my suspicion have to do with that quote? Well...it's all to do with the "Central Bank Gold Agreement" which since inception, had Central Banks over the world selling gold into the open market at the average yearly rate of ~390 tonnes.
http://www.zerohedge.com/article/central-banks-no-longer-selling-gold-duh-factor-1010
As of the 27th of September this year, CBGA is no longer in effect, in the sense that exactly as ANOTHER stated would occur:
Central Banks are no longer selling gold!
In fact this year, they only sold 6.4 tonnes, compared to the average that is a huuuuge decline. Let's mark it out on a chart:
Central Banks stopped selling gold, and paper became relatively worthless very very quickly. Let's see what happens now. My guess is, right before the **** hits the fan all the holders of COMEX GC longs, GLD, SLV, ASX:GOLD, ASX:ETPMAG, etc will have all their holdings redeemed in cash (as it states in their respective PDS is legal!), HSBC vanishes with the precious metals and everything pops. Canary in the coal mine style, watch for forced redemptions of paper gold in worthless fiat or similar. I believe the COMEX GC contract can be legally redeemed in units of GLD!
ANOTHER reckons what happens next:
Holders in gold miners will pay huge Government enforced tax to be allowed to take profit. Currencies will only be worth the gold their respective countries hold in reserves and underground (as a major producer/exporter Australia is naturally long gold, we should be grateful!). Oil/energy will be extremely expensive in gold terms.
...and the most important one:
As the price of gold increases, supply will dry up proportionally. The higher it goes, the less supply will be available to be sold onto the market. The opposite to all other commodities (even silver).