Originally Posted by
MrDevine
You would find if we had still had a gold backed paper currency, not many of the innovations and 'progress' of the past 50 years (since the Bretton Woods agreement) would have happened. The reason is this, there is only so much gold around, so of course there will be ceiling to how much value can be created.
GOLD is the perfect place to park your money if you're a bear and you look forward to a grim future for the world.
I still think that the sovereign debt issues will be worked out on a geopolitical level, there will be some pain, there will be some defaults, but ultimately investors will play second fiddle to what government leaders decide to do. This may or may not impact the GOLD price.
By the way, I think China is going to cause the world economy a few headaches in the short to medium term.
Remember this is the first truly global downturn, it is in everyones national interest to work together.