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July 9, 2009

Gold Is The Place To Be

Mines are not as productive as they used to be. Supply is very constrained. So if we get a big increase in demand, there are really no significant new gold deposits that are going to come on-stream any time soon. So the companies that are already producing are simply going to be able to get a lot more money for the ounces that they pull out of the ground.

The other key consideration is an inevitable return to the ‘Gold Standard’ as a way for the world’s central banks to attach a meaningful valuation to each of their country’s currencies.

The only solution to the economic problems that we have today is a return to sound money… The world is ultimately going to have to move away from the ‘Dollar Standard’ and back their currencies with something real. I think gold is the best thing to use. Gold has been money for 5,000 years.
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