Thanks all.I think you just about covered everything grant plus some things that havnt been.Interesting economic times ahead that the world really hasnt had to face before.Its akin to a cultural shock that the world is going through as it struggles with the ethics and morals of breaking down barriers between cultures/religions/economies and combinations thereof in the name of globalism and a world economy.Its no wonder gold is coming back to its former glory as a hedge against uncertainty and a form of wealth.
If a world economy is to be attained then a world currency standard is required.It cant simply be the US$ or the Euro.All countries will be required to keep a store of it that reflects that countries wealth,particularly in uncertain times.Sound familiar?No longer holding a single countries currency will be the world standard of wealth.The shift back to gold is reflecting a shift away from the US economy as the dominant world economic force.With the likes of a combined Europe and the emergence of China and eventually others a weakening US economy will find itself,for the moment anyway,not so economically dominant as it once was.
A world economy is just that.It cannot be dominated by one.With the Fed throwing its hands in the air this week re the US$ I think we have just witnessed its acceptance of this fact.I think we might see the POG at the 340-360 level for quite a while and if countries do move back to it as the major store of wealth it will be interesting to see just how high it goes considering the lack of supply.Gold will have once again found its common use.Useless for a lot of things but valued intrinsically for what it is.
Cheers all and thanks for all the comments.Interesting stuff.
