Saturday, February 28, 2009

Has the move to a private world gold money standard just started?

With the advent of GoldMoney.Com and other digital means of paying international debts with gold, Maturin Towers was very interested to note the following story:

=> Hedge fund to offer shares priced in gold

With so many wealthy people around the world piling up personal reserves of gold, to beat the upcoming G20 conference which will internationalize inflation as a means of prolonging the world dollar standard, hedge funds are beginning to price assets in gold.

Although you may know of other similar instances, this is the first time that Maturin Towers has noted anyone in the post-1971 world pricing their goods in gold rather than in a standard fiat currency, such as dollars, euros, yen, or the pound.

Is February 2009 the month history will say was the time the world started moving to a private world gold money standard, and to heck with the central banks and their G20 conferences? We shall see.

In the meantime, the Torygraph has created an interesting 'meta-page' on gold, which contains links to all of its ongoing articles referencing the barbarous relic. You might want to check it out:

=> Telegraph Gold Page

(The founder of GoldMoney.Com, James Turk, pops up in quite a few of the articles referenced.)

The danger, of course, with gold, is that it too could build up its own asset bubble. So you have to make your own mind up about it, and decide whether it's worth investing in. On this week's Peter Schiff podcast (Feb 25), Der SchiffMeister reckoned that gold will be going to $5,000 dollars an ounce before such bubble territory is approached, in perhaps three to five years' time, after the dollar has collapsed.

For a gold bug like me, and with M4 at 17.5%, it's a no-brainer; I agree with every word. It's actually good that so few believe Mr Schiff, however, because it keeps the price down for the rest of us while everyone else piles into the dollar.

This does of course build up a great post-G20 conference competition between the Keynesians and the Austrians. Because if the Keynesians are right, then all of us Austrians are going to be wiped out with our gold reserves. Whereas if we Austrians are right, all the Keynesians currently holding dollars are going to be wiped out.

What an interesting world we live in. I would personally like to thank all of the politicians out there who have made this excitement possible.

No doubt when we Austrians are proved right and the Keynesians then try to scape-goat us and steal our gold from us, things will get even more interesting.

1 comment:

Mark Herpel said...

Great post, there are new DGCs opening each month. New this month is and coming next month the company we are so excited about is

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