Aluminium More Expensive ???
That is true. Of course at that time, the metal was so rare and expensive to produce, its scarcity made it valuable. Once the electrolitic method of producing aluminum was discovered and aluminum was found to be one of the most abundant elements, its price dropped like a stone. Clearly, aluminum couldn't be used for monetary storage.
The point that gold may no longer play a valued role in monetary trade could be true. Since most countries no longer back there currency with gold, its really whatever you believe a currency is worth(i.e. the northern Peso).
Since gold is no longer a standard, I propose we make diamonds as the new unit for currency. De Beers has been successful in convincing many a person to trade in 3 months salary for a small piece of glass like rock. Might make Winspear move faster.
The problem with the short sellers is that they don't seem to think they should play the game. If they win great. If they lose, the governments can bail them out. When he game is fixed, it hardly makes it fair. If LTCM was allowed to flounder like it should have, then there would have been a flight to gold. If the BOE hadn't made there announcement, the fundamentals of gold (more buyers then sellers) would have forced the shorts to cover there position quickly. Shorting has its place in the world (do you really think Amazon.com is worth more than Texaco and Bid.com should trade over $ 10 ?), but unfair interference hurts us all in the long run (remember when Japan's bubble burst ?).
Cheers
Cheers |
