Quote:I think the message in that link and the message conveyed by China's actions pretty much tells us all we need to know about the future of the U.S. dollar as the world's reserve currency and the future direction of the price of gold. As the article mentions, gold represents less than 15% of the listed countries' Central Banking reserves. What it does not mention is that one way to make that number a lot larger is for the price of gold to rise substantially in price. Please note that in 1933 the U.S. - with its currency backed by gold - revalued the price of gold by 75% from $20/oz to $35/oz for the specific purpose of instantaneously increasing value of its gold reserves and increasing the ratio of gold as percentage of its total reserves. I would suggest that eventually we will see a globally coordinated event (which may or may not include the U.S.) that will accomplish the same purpose as was undertaken by FDR in 1933, but on a much larger scale. Please take another look at the opening quote to put my comment in proper context. Have a great weekend everyone.
