Folks, As gold hits yet another record price, the news from the financial world just keeps on getting weirder. For example, those who lend money to governments are now demanding that central banks increase their gold reserves.
In other words, the days of cutting down ten trees, printing the queens face on them and selling the same for $500 million are now gone. About a year and a half ago, the Indian central bank bought a few tons of gold at $1,000 and ounce. That purchase, intended to give notice that someone was mismanaging their money supply aptly illustrates how messed up the printing side is. Gold has appreciated 60% since. Lastly, growing up in Nyerere's socialist Tanzania, I once had to write a term paper on Karl Marx's, "Although gold and silver are not by nature money, money is by nature gold and silver.” I scored an A for that term paper as the instructor heard exactly what he wanted to hear. What I did learn then was the absurdity of any government spending more money than it earned. Until governments learn to balance their budgets again, gold is going to be the premier place for the storage of wealth. Mervyn1600Lobo