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Gold/Mining/Energy : Gold Price Monitor

GDXJ 113.78

-1.2%

Dec 31 4:00 PM EST

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To: lorne who wrote (2985)	11/9/1997 2:19:00 PM
From: Eashoa' M'sheekha	Read Replies (3) of 116837

Maybe I Can Shed Some Light On This Subject.Re:Gold Standard......... The gold standard was first put into operation in Great Britain in 1821. The full international gold standard lasted from about 1870 until World War I. It was re-established about 1928, though by that time gold coins were no longer in circulation in many countries. The Great Depression caused the collapse of the standard, and in the post-World War II international system most exchange rates were pegged either to gold or to the dollar. In 1958 a type of gold standard was established again in which the major European countries had free convertibility of their currencies into gold and dollars for international payments. But there was no restoration of a pure international gold standard as such. Then in 1971 United States President Richard M. Nixon ended the convertibility of the dollar into gold. Since then gold has been no more than a commodity traded on international markets. The problem with gold as a standard,is that gold would have to be priced at an unrealistic,in terms of cost to produce,value in order to represent the paper values in our system today.The resource is finite, whereas the ability to print money is not.A return to a gold related standard whereas gold is no longer a commodity is highly unlikey given these realisms from a global perspective. In order for gold to return to more traditional trading ranges of the recent past,people will have to consider it a store of wealth again as REAL WEALTH.Right now coins etc. are typically bought as keepsakes or gifts etc. to mark occasions of historical importance in our culture. Whether or not other cultures decide on an individual basis to go back to gold in the event of a currency crises and massive inflation that usually follows remains to be seen.Enter:The world banks and the IMF to shore up the instability and bring confidence back to these countries.What is unclear to many at this time is the reasoning of timing for the Swiss announcment and other impending possible sales during this particuar Global scenario. Hope That Helps Taurus(Not A GoldBug)

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