Rickards also claims gold is the ultimate asset to devalue paper currencies against. It has been done in the past. He thinks it may happen again. Of course we might go another round with a new paper currency first. SDR's as a world currency to replace sovereign currencies anyone? But they will suffer the same fate as all the rest of fiat currencies - over issuance resulting in debasement of loss of purchasing power. It amazes me that people think that gold is not money, but rather simply a commodity. Even Denninger, as smart as he is, denies gold is used as money. Yet central banks, the creators of fiat currencies, are accumulating gold. Do they know something we don't? Why would they be buying it as a strategic asset if it is not money? Why would they not just buy corn, or iron ore or some other commodity? Why is gold such a special commodity to central banks? Because they know it is the only real money and everything else pales in comparison as an asset that will hold some value when many paper promises are relegated to the dust bin like so many have been throughout history and will be in the future. Central banks do not hold gold for nostalgic reasons. Top 10 nations stockpiling gold Eric Sprott explains the situation as well as anyone. Both above articles are old. Physical demand has not subsided since they were penned. And I know I'm preaching to the choir as far as you are concerned ehoff. Just thought others might be interested. John Central banks buying record amounts of gold
Edited by John Burns 12/1/2015 10:43
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