The U.S. dollar has been viewed as the world’s undisputed reserve currency since the Bretton Woods agreement in 1944. Unfortunately investors the world over are now asking themselves if that should continue to be the case. They are instead, on an ever-increasing basis, seeking a more stable form of money in which to park their global savings. That form is gold.
via forbes.com
A devaluation, which is something the American’s really haven’t felt ever, a devaluation means that you’ve been run over by a train and your legs have been cut off. That’s what it means to a country. It’s a terrible thing to go through.
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If they want to see some economic activity and rebirth of confidence in the country and tranquility, they’re going to have to give us silver money. And, it will be contagious. You know, once our silver coin is monetized, it will be money. And it will be a better money than the US dollar. People will be flooding into Mexico to buy these coins because they are money. They’re not fluctuating up and down with the price of silver, they have a monetary value, and that’s an enormous difference.
Excerpt from King World News interview with Hugo Salinas Price
Update: After following up with the Mint, any shipments and deliveries of American Eagle 2010 edition both gold and silver are TBD and the mint has no idea on when these will be received if at all this year. A small shipment of American Buffalo gold coins will go on sale on June 3 at noon. The mint expects these to sell out promptly.
via zerohedge.com
Um. Wow.
In the first four months of 2010, the Greek central bank sold more than 50,000 sovereigns at its main downtown Athens office. Bank officials estimate that at least 100,000 other coins changed hands on the black market. The Bank of Greece has received as much as $409 per coin, which works out to a price of more than $1,700 per ounce of gold! Prices paid on the black market are reckoned to be even higher. A popular spot for street vendors to sell their coins is near the Athens Stock Exchange. There the traders wait for citizens to bring payments received from unloading their paper assets like stocks and bonds.
If this system is illusory, how has it prospered over centuries? The answer is that for many years governments ran surpluses and at times had no debt at all. Growth was robust providing support to the tax base. Governments had the trust of bond markets to rollover maturing obligations. With some fits and starts, tangible wealth creation outpaced debt creation. And until recently paper money was backed by gold at fixed rates of exchange. Today all four legs of the table – surpluses, growth, trust and gold are gone or damaged.
Interesting fact of the day: Canada’s gold reserves are less (and in some cases substantially less, by several orders of magnitude) than countries such as: Mexico, Bangladesh, Laos, Colombia, Guatemala, Latvia, Cambodia, Sri Lanka, Bulgaria, Egypt, …and the list goes on.
Singapore is a country about the same size as the city of Delta (BC), with a population of about 5 million people, and yet they have 127.4 tonnes of gold reserves. Canada has 3.4 tonnes. The US has 8,133.5 tonnes. Source: http://en.wikipedia.org/wiki/Gold_reserveDennis Gartman and Andrew Sorkin discuss the weak dollar and gold.
In direct contradiction to some of the verbage in the video, I’d suggest that saying “Gold is a Bubble” is fairly naive. Can it and will it fluctuate up and down? Yes. Will it ever return to an intrinsic value of zero (as paper currency does)? No.
Instead, my gut says that anyone claiming that “Gold is a Bubble” is indicative of people’s lust for a quick buck in the stock market, combined with a gross misunderstanding of what “real” money is.
Maybe not a bad time to buy some more silver? Article.
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