BDR 0.00% 6.5¢ beadell resources limited

Gold price, page-4513

  1. 445 Posts.
    Don't know anything about black swans.
    But here are some of my blurry sociological glimpses that caused the alarm bells..
    I think we've reduced very complex political plays of global power and control into a tussle between fiat currency and Au (plus Ag, Pd & Pt). Concerns about governments having power to confiscate private gold holdings further narrowed that focus.
    Do governments really need to confiscate privately held gold? That confiscation law has been suspended in Australia for many years. Putting in into context, it was enacted before high technology became essential to modern lifestyle.
    When we account for the global reach of technology, a government that controls it controls access to food, water, air, medicine, energy, education, communication and security (weaponry). Land, building and transportation are further controlled by legislation. These were probably what Warren Buffet had in mind when he scoffed at the allure of gold. Presumably, the allure of a greater web of power and control held more appeal for him.
    As for massive national debts that cannot be repaid, must these be settled by means of war? War destroys too much that is of great value, so how is that economic and power-preserving for the intelligent creditor having the upper hand? Far better to enslave a nation than to destroy it. Whilst I don't agree with Norman Franz's politically incorrect saying that gold is the money of kings, silver the money of gentlemen, barter the money of peasants and debt the money of slaves, his understanding on crippling debt is indisputable.
    Fiat currency depends on the good reputation of government, but hasn't it always been about good government, whichever the form of currency used?
    1. How would a gold-backed currency be accepted if that government lacks credibility?
    2. Would other nations trust the value of those tons of gold held in reserve?
    3. How would an annual perfunctory audit on the reserve discover any tungsten within? I found it interesting that the auditors don't really weigh and count 8,000 tons of gold. They check the seal to the vault.
    4. With hi-tech (incl. 3D printing) and discreet government backing, that seal wouldn't be too difficult to replicate, would it?
    5. Not to overlook that the stored physical gold has a major vulnerability not inherent in fiat currency: nuclear attack at the storage site. What is the value of a currency when most of its gold backing is vapourised?
    To clarify, I still support Au and BDR. And good land. The above points are the alarm bells ringing (maybe just white noise?).
    Cheers, R.
 
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