Back To The Gold (now at $1400/ounce) Standard?
When the World Bank chief this week said a new global currency regime should be benchmarked against gold, that’s gotta be a bullish sign for the metal.
This from the National Post, one of the British papers, clarified the World Bank head’s views today: “The man who started the gold rush, the World Bank’s Robert Zoellick, says he didn’t propose a full return to a gold standard. His objective, he said, was to point out that the gold price is sending a message that the policy fundamentals within the G20 are rotten. And that’s a message–with gold at US$1,400 an ounce–that can’t be ignored.” Mr. Zoellick, former U.S. trade rep and now head of the World Bank, suggested a new regime replacing the U.S. dollar as the main reserve currency, to one that included a basket of the dollar, the euro, the Japanese yen, Britain’s pound and China’s yuan.
Read more at the Financial Post, a sister publication, about anti-gold fever among economists, who usually are the last ones to call a bull or bear market in anything. Full disclosure: I own some GTU in my retirement fund, and think gold could go to $5,000. Anyone care to wager?