[quote=peterb]Gold and the US$ did well today….who’d a thunk it?! I think this is fear speaking to the market. Stocks are hurting and the US$ and gold rising. The market is starting to treat gold like honest money and the US$ as at least as good as the other fiats, if not better. Govt policies are going to ZIRP on fiat currencies. These guys are scared and this is their answer to solve the problem. Make money almost free to the banks. Only one problem, the banks are insolvent. Perhaps if the govts’ get crazy enough, they’ll destabilize their currencies? It’s a possibility that favours gold.[/quote]
If we turn to Gold it won’t be freely traded. It will be a set exchange rate as before.
That mean anyone buying Gold at $1k a ounce is going to get hosed when they set up the exchange rate at $300-$400 an oz. The last time it was used it was set at $35 an oz.
