New Gold Standard to Emerge?
March 10, 2013 [...]
We've read and have heard various conflicting opinions regarding a gold standard. But, there are plenty of signs that are pointing to an increased importance given to gold by sovereign economies: national banks are buying more gold, the IMF itself holds huge amounts of the metal and many countries are avoiding trade with the use of US dollars.
Because the US dollar is still the reserve currency of the World, it's interesting to observe that pretty more and more countries are avoiding it. And, many of those countries have actually substituted US dollars with gold in bilateral trade. Others have opted for their own and their partner country's currencies.
Venezuela sells oil to Russia in exchange for Russian rubles.
Japan and China are eliminating US dollars in bilateral trade. The yuan and the yen are used instead.
Iran is selling natural gas to Turkey in exchange for physical gold.
India is buying oil from Iran with physical gold.
Quite recently, in early March, Hungary has announced that they want to exchange part of their US dollar (held as foreign exchange) reserves for "another currency" - economists and the press have speculated that Hungary might sell part of its dollars and buy rubles instead.
In addition, we can observe a "gold accumulation fever" among nations: Brazil, China, India, Russia, Kazakhstan, Azerbaijan are all buying tonnes of gold - as if they are building up a hedge, while waiting for a currency crisis.
Also: let's not forget about Germany's gold repatriation from abroad - and example followed by many other countries.
Events and Facts that Might Signal a New Gold Standard
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Here are several factors that might point out to a new gold standard emerging.
Germany repatriating its gold, other countries following
many countries are buying gold to build up physical gold reserves
numerous countries have substituted the US dollar with gold in bilateral trade
even the IMF holds gold - it's the 3rd biggest physical gold owner entity (right after the USA and Germany)
BRIC nations buying large amounts of gold - and, non-BRIC countries are following the example
If a new gold standard will be put in place, you'll rejoice if you already own gold. Small investors, families and individuals should turn to gold as a hedge against inflation.
If currencies crumble, poverty will arise. Prime Values has released articles before about the impending global economic collapse, the possibility of which is increasing month-by-month, year-by-year. Only those financially well-prepared will be able to cope.
This is the reason why purchasing precious metals (possibly other hard assets as well) could save your wealth and ensure long-time financial safety to you and your family. If a gold standard will be put in place, then gold's price will increase dramatically - and those holding physical gold will not only have their wealth conserved, but will also gain from the price spike!