Ok, I think I see your point. But the fiat currency argument has...

Ok, I think I see your point. But the fiat currency argument has been applicable for over 100 years now so it's hard to see how that could work ...

I can see though, the strategy of buying gold to hedge against US dollar devaluement. However I would've thought the US dollar deficit was the cause of this devaluement, and with the $A being in a much stronger position (we have all the stuff the Chinese can't copy, Americas major exports WindowsXP, Star wars etc can all be duplicated at no cost) we wouldn't be in the same position.

Hmm.