By Zee
As you've no doubt read here and elsewhere, gold prices and gold buying are on the rise in the last year. Dramatically so. Forward thinking investors in every country are buying it up like there is no tomorrow. Why?
Many publications will attribute this to a generalized fear by the public that the paper currencies of today will not be worth much if anything tomorrow. The more money we print, the less valuable it is. And with the fed's money-printing program "QE 2" just wrapping up and "QE 3" about to begin, we have done a lot of damage to our own dollar.
Buyers are stocking up on gold because we all know what this could mean for the near future. After all, just look at the inflation and hyper inflation has done to many countries in our lifetimes - Argentina in 2001 is a prime example. However, trading bullion in the streets after the EOTWAWKI isn't going to be very practical - with purity issues and all. So why is everyone investing in bullion?
There is a lot of talk about returning to a gold standard, wherein ever dollar printed is backed by a set value of gold on hand in Fort Knox. See other articles for the details, but this is the best, lest problematic solution to our dollar value crisis.
So far, all the talking is being done by the pundits, but not by politicians or the Fed. Eventually, when the world governments finally see the error of their ways, and return to the wisdom of the gold standard, they will need to stock up on enough gold to back their fiat currency at an acceptable level of value.
And with that level of demand as-of-yet-unseen-in-history, the price of gold will skyrocket yet again.
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