Current Gold Price

[alternative-energy]

Well, people with gold would suddenly become very rich, and people with paper would suddenly become very poor.

Its a complicated way of telling pensioners to die quietly in the corner, but it remains a way to tell pensioners to die quietly in the corner.

Look at what's happening to pensioners in Greece... eventually the paper will be worthless anyway.
Well, I think that what would happen is that the gold would be sold to the government with newly created money. Faith in the fiat money system would be restored as gold is now backing the currency. The new rich then use their money for investment in business and the process starts again. More growth on a finite planet, But wait. We have no cheap energy.

[Lord Beria3]

http://www.goldmoney.com/gold-research/ ... ities.html

While stock markets suffered price declines, the gold price benefited from growing fears in financial markets in yesterday's trading session, with the yellow metal climbing back above $1,700. Silver also rose above resistance at $32.50 per ounce. In addition to Greek's economic problems, the prospect of a collapse of Italy’s coalition government contributed to investors’ flight to precious metals. Such an event would exacerbate Italy's as well as the eurozone's debt crisis. Investor Dennis Gartman, who was saying a few days ago that gold prices are likely to fall even further, revised his forecast yesterday by advising investors to re-enter the gold market, which he thinks it likely to rally higher.

Sounds like we may be seeing a rally in gold and silver reoccuring as sovereign debt fears are now seriously spreading to Italy.

[Lord Beria3]

http://www.forbes.com/sites/richdanker/ ... -standard/

Finished off as it was by the callous executive order of a U.S. president, the gold standard cannot be resurrected the same way. As the political system inches back toward gold-backed money, a roadmap for getting there is essential.

This is exactly what Lewis E. Lehrman (with whom this writer is professionally associated via American Principles Project and the Lehrman Institute) has provided with The True Gold Standard: A Monetary Reform Plan Without Official Reserve Currencies. Steeped in the experience of Jacques Rueff’s handling of postwar France’s return to the gold standard and Lehrman’s own thinking as a public intellectual, it is a comprehensive yet straightforward plan for cleaning up the global financial system.

As the subtitle suggests, the plan is based on replacing national currencies (the dollar, euro, yen) with the non-national, neutral asset of gold as the world’s reserve money supply. Nations would settle international payment deficits and surpluses in gold rather than paper-based currencies. This would have the effect, principally on the U.S. as the issuer of two-thirds of world reserves, of removing the debt overhang which has made trade deficits, government overborrowing, and hot money bubbles the way of life. Depending on whom you asked, the dollar standard was an “exorbitant privilege” (French president Valery Giscard d’Estaing) or an upgrade (Citibank financier Walter Wriston). Decades of financial disorder have now made it clear that it is actually an “insupportable burden” as Lehrman puts it.

Lehrman’s historical model is the international gold standard of 1873-1914, an era of industrial breakthrough, global economic growth, and astounding price stability. As charted by his colleague John Muller, it was the most stable period of U.S. monetary regimes based on the Consumer Price Index. Even with price shocks due to technological changes and rapid globalization, prices in the short-term and long-run were more stable than at any other time in American history. This was because of the credibility of the link between the dollar and gold, both for citizens at home and governments abroad.

How do we redevelop this best practice for the 21st century? In some ways, it will be less difficult with the integration of gold into the financial system already through electronic payment systems. On a practical level, using gold as money has never been easier (though financial repression of gold through taxes and regulation still presents a formidable barrier).

On the other hand, the proliferation of credit through new instruments and disintermediation has made the financial system more disorderly than ever. A major portion of credit creation today has been taken over by the shadow banking system, the recipient of the Federal Reserve’s bailouts. In addition to a system of unrestricted convertibility between the dollar and gold, Lehrman also outlines banking reform which would insist that financial institutions reestablish their role as fiduciaries through improved liquidity standards using fair market valuation and quarterly stress tests.

Interesting article on how a gold standard might work.

[Lord Beria3]

http://www.goldmoney.com/gold-research/ ... art-2.html

Do you have any long-term price targets for gold and silver?

Nathan: I think we will get to a point at which there is widespread concern about the decline of the value of the dollar as represented by the gold price in dollars. I would guess this is around $7,000 or so. Could be $12,000. At that point, we might get a political consensus of “this must stop immediately.” That might be the end of the “gold bull market” or dollar devaluation period. On the other hand, we might get to that point, but the government will be so reliant upon printing press finance that it will feel unable to stop the process. In that case, we could have any number you want to throw out there. Sometimes hyperinflations reach silly proportions. Then you get the ten billion dollar bills and so forth. But, often it doesn’t go so far as that. In the 1980s, the Mexican peso went from 12/dollar to around 2,500. That’s about a 200:1 devaluation. Since we began this around $350/oz., a similar devaluation would take us to about $70,000 per ounce of gold. It is mostly a question of politics.

Roughly a multiple of 40 its current value.

[kenneal - lagger]

Lost about 15% on my small gold holding but this is more than compensated for by the 50% gain on silver. I didn't really buy the PMs speculatively, more as a safety buffer in case cash plummets.

[UndercoverElephant]

I still believe the real action in precious metals hasn't happened yet. And that it may even still go down further before it goes up, due to people being forced to sell gold to cover other losses. Only when most of the gold, including the "paper gold" is in "strong hands" (i.e. held by people who will not be forced to sell it during a widespread crisis of paper assets) will the price be able to take off properly.

[UndercoverElephant]

Gold is back above £1100 again for the first time in a month. Not really all that surprising.

[alternative-energy]

Gold is back above £1100 again for the first time in a month. Not really all that surprising.

To be honest, taking into account what has happen since the last highs, I'm surprised it's not higher.

[kenneal - lagger]

It's gone down from £142 to £140 on a half sovereign since I bought some yesterday morning and I haven't even received them yet!

[Lord Beria3]

http://www.spiegel.de/international/eur ... #ref=nlint

Germany has blocked plans reportedly aired at the meeting of G-20 leaders last week to beef up the euro rescue fund by drawing on national central bank reserves. Most German media commentators on Monday agreed that Germany should safeguard its treasure.

Fascinating how gold is already seen by central banks are a vital resource! I suspect that some within the international central banking circles already know that some form of gold standard is coming.

[Lord Beria3]

http://video.ft.com/v/1262968031001/Cou ... hit-2-500-

Interesting video...

[Lord Beria3]

http://www.psychopathiceconomics.com/Da ... old_chart/

http://www.psychopathiceconomics.com/Da ... old_chart/

if we are on the brink of hyperinflation than the price of gold in ounces will be many multiples of the current value, if the trend carries on.

[Oxenstierna]

Any views on the current gold price? In spite of all the craziness in the Eurozone, the price has fallen significantly in the last month.

Is this because of a stronger dollar?

[Ludwig]

Any views on the current gold price? In spite of all the craziness in the Eurozone, the price has fallen significantly in the last month.

Is this because of a stronger dollar?

Seems to me TPTB will do anything to keep the dollar artificially high, and gold as low as possible, until the last possible minute. I don't know exactly how they will achieve this but the whole monetary system is so clearly so corrupt that there are probably ways and means.

What I am wondering is whether they'll manage to stop the price of gold going through the roof until the final collapse of western currencies, at which point gold may prove of less value than barterable goods.

As for hyperinflation: I have a suspicion that plans are in place to transform society so fundamentally after the dollar collapses that hyperinflation won't actually happen.

I am convinced that there are long-standing plans in place for dealing with a post-PO world. The West may be bankrupt, but our "leaders" have the technology to sort the problem out in fairly efficient fashion.

[clv101]

I am convinced that there are long-standing plans in place for dealing with a post-PO world.

There may be plans but I have little faith in any large scale, pro-active response happening (a good response or a bad one). "Dealing with a post-PO world"? We can barely 'deal' with the pre-PO world. Post peak everyone's ability to do stuff reduces. That includes our leaders. In short I don't subscribe to the narrative of a future where some individuals are dramatically empowered and are able to enact significant national scale plans. That's simply not how collapse works.

Collapse is about systems breaking up, spheres of influence contracting, complexity falling away. The issues in Mexico are an interesting contemporary example, where the state is no longer in full control of the whole nation.