Gold’s value - fundamentally

Posted | 27/11/2013 / Views | 1466
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At one of our recent seminars we again got asked about “where is the real value in gold?   It’s not used like oil, copper and grain and just who decides what it’s worth?”  The answer is quite simple.  Gold is rare, it’s difficult and expensive to extract, it’s unique, it cannot be printed at a whim as is currently happening with currencies, it can’t be extinguished by decree.  It has been recognised as money for thousands of years.  Central Banks all over the world store it for their reserves, they don’t store grain or copper or oil.  Each and every time over history when currency is delinked from gold (Fiat) it ends in a collapse of that currency and hyperinflation because man (Governments) can’t be trusted to leave the disciplines of this metal as an anchor to fiscal discipline.  In an excellent article posted to our website today, you can see very clearly how China understands this and how the scale of their positioning is far in excess of anything we have written about before.  It is a must read.