The Return of the Gold Standard: Opinion
By Peter Morici, Senior Contributor to TheStreet
On Monday May 9, 2011, 8:30 am EDT
The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
NEW YORK (TheStreet) -- Gold is selling for close to $1,500 an ounce, up from $258 in 2001.
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If private investors continue to doubt the dollar and bet on gold, central banks will be forced into gold. Investors won't trust currencies backed by dollars, and central banks will be just as foolish as private investors to trust yuan-denominated bonds.
Long-term contracts could require payments specified in terms of gold, collateralized with deposits in ETFs, and even settled with drafts against these funds -- sort of gold-denominated checking accounts.
Unless the U.S. gets its economic house in order, gold will become money again, and national currencies will only be money if backed by gold.
Full article: http://finance.yahoo.com/news/The-Return-of-the-Gold-tsmf-1883946633.html?x=0&.v=2
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
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