Sometimes I am amazed how status quo blowhards can get published and really good writing like midtowng, New Deal, Robert Oak can get overlooked.
Today was one of the status quo days as David Hirst asked the question What's blowing the golden bubble?. Following is this assinine statement:
Gold became an unsatisfactory medium of exchange as the world entered the modern age. Cash, banknotes and cheques were far superior to gold, especially when backed by gold.
It is in the US where the great gold debate is centred.
America is a gold-loving nation. Gold could well be added to the "three Gs" that kept the Republicans in power in recent times: God, gays and guns.
America is a gold loving nation? Is he serious? It is barely on the radar of Joe Sixpack. I will save you the agony of reading the entire article but some of my choice hilites are:
gold has been the best wealth protection scheme
principally there isn't much of it in the ground and the easy stuff was dug up by the Romans.
One can't eat the gold.
The Romans? Really? So the California Gold Rush that probably spawned the largest population movement the world ever had witnessed was of little consequence. How about the Klondike? Comstock? Nevada Silver Rush? Any of that ring a bell?
While David is busy getting a clue. The Financial Times is reporting once again that mints around the world are in short supply of product .... again.
The US Mint has sold 193,500 ounces of its popular American Eagle gold coin in the first seven weeks of this year, the same amount it shipped during the whole of 2007 and about the same as in the first six months of last year.
If you doubt that this isn't just an American gold rush...
The Rand Refinery in Johannesburg, which mints the world’s most popular gold coin, South Africa’s Krugerrand, said demand was above its maximum capacity, even after doubling last month to 20,000 ounces from 10,000 ounces a week.
Johan Botha, head of precious metals sales at the Rand Refinery, said there was demand for more from international investors, pointing to strong sales to Switzerland, the UK and Germany. “If we were able to produce 30,000 ounces,the market would absorb it,” he said.
The world is sniffing hyperinflation and deflation is only a scare tactic that allows the governments of the world the cover to continue to chop down every tree in the forrest.