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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Investor-ex! who wrote (25172)	12/31/1998 4:46:00 PM
From: Hawkmoon	Read Replies (1) \| Respond to of 116782

OK, I'll grant you that if all the CB's decided to peg the value of their currency to the market price of gold, the XAU would SOAR!! However, gold was set at $35/ounce after Bretton-Woods and if I recall correctly didn't begin to break that valuation until the '70's. Oops!!... here's the data for when gold broke from a $17 range: 12/23/74,17.40 12/24/74,17.40 12/26/74,17.40 12/27/74,17.40 12/30/74,17.40 12/31/74,189.50 01/02/75,172.70 01/03/75,171.50 01/06/75,172.50 So wouldn't they be forced to total the amount of all of their outstanding currency, add up all the gold currently available, and then find a value for gold to peg it to?? Then the requirement would be that if you wanted to print more money, you would have to mine more gold, right?? I will have to admit that I'm sketchy on the economics involved in reverting to a gold-backed currency (but then again, that is why I have spent so much time on this thread lately learning from all of you..:0). However, I see some real obstacles to reverting to gold by CB's and thus my prognosis for expecting them to continue to apply their manipulative pressure on the metal as they defend the "intrinsic value" of their Fiat money. And Gold only has value as a perceived safe harbor in a period of grave global unrest or disaster. Since the CB intent is to distract the common man's attention from the global stresses of the current financial system, they HAVE TO apply continued pressure on gold or face having the "gold genie" escape from the bottle and REALLY create havoc in money markets. I mean truly, what is the value of gold?? Why is gold different than a scenario where CB's set up a worldwide paper currency, or Special Drawing Rights (SDR's) against which ALL currencies are pegged?? Sure Gold has an industrial use (but since it is intrical to the electronics industry, they certainly don't want to see prices double). But it's heavy, hard to store, and harder still to hide. But the bottom line is that the CB's to save their own currency structures must undermine the monetary value of gold. Only when they fail in doing this will gold truly come into it own, the financial bubble will deflate, banks will collapse, paper wealth destroyed, and the process of creative destruction begun anew. I'm perfectly open to all thoughts and opinions on my ramblings. Commence Firing!! Regards, Ron