To: siempre who wrote (159 ) 7/12/2005 1:36:16 PM From: regli Read Replies (1) | Respond to I'll just translate the last paragraph to give you the essence of the article."However, the probability is small that the world descends into such a chaotic state that gold would again be chosen as an official currency. Proponents of a gold currency argue that the metal is physically comprehensible and that its quantity remains limited in relation to the money supply and therefore out of the control of politicians and note bankers. But it would be an economical nonsense to couple the world payment system to a product where the available quantity relies on the inflexible production of the mining industry. Attempting to do so would be analogous to fitting the world economy in a very tight monetary corset. Besides, the gold market is too illiquid to nowadays serve as the basis of the monetary system. Daily turnover amounts to an estimated $10 billion – a mere 0.5% of the volume on the global FOREX market. By the way, this is also a problem for the reserve banks, which could hardly use their remaining gold reserves due to the tightness of the gold market to support their currency. Investors should be able to profit nicely, if they succeed in using the movements of the disaster barometer (gold) skillfully. However, it would be presumptuous to believe that by investing in gold one invests in the world currency of the future."
