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Gold-Backed Currency? Not Any Time Soon

Last year, many in 2013 were calling for the price of gold and silver to double, and more! Then came 2014 and those dashed hopes were pushed back to the second half of 2014. Earlier, in the first half of the year, we said that the second half could likely be more of the same, as in 2013, [See 2014 Could Be A Yawner]. With just a few weeks away from the end of the year, prospects for 2015 can equally be brought into question re PM price appreciation.

Is the petrodollar on the way out? More frequently, the signs say yes. Is a gold-backed currency standard waiting to replace it? Beliefs, at least in the PM community, remain high, but facts to substantiate the beliefs are hard to find. Sure, China and Russia have been and continue to be the largest buyers of physical gold, but is either the Renminbe or the Ruble ready for Prime Time? The short answer is no, and more emphatically for the Ruble. While the Renminbe is becoming more widely viewed as a potential replacement for the “dollar,” China has nowhere near the capability of a world reserve currency system and all that it entails.

How, then, can there be a gold-backed currency? Last week, we discussed the likelihood of Special Drawing Rights, [SDRs] and how both China and Russia favor their use! SDRs are a creation of the existing elite banking system, and any such change to them would be a lateral move that will ensure New World Order domination as a fait accompli, and any illusion of change would be a delusion in fact.

Can there be some ray of hope on the horizon for past and current buyers of physical gold and silver? It seems the best chance [cannot say best “opportunity”] lies in chaos, as in more war skirmishes prompted by the United States. Despite ample US alienation of its largest European ally and de facto 51st state, Germany, if Germany refuses to exercise her own sovereign backbone and defend her economy’s financial interests, instead of undermining them, [a proven fact] with support of the failed sanctions against Russia, there is no strong support for an alternative to the petrodollar, despite all the bluster against it. The irony cannot be lost that one of Germany’s most important trading partners, especially for energy, is Russia. Merkel comes from the same school as Obama when it comes to protecting one’s economy.

Source GoldSilverWorlds

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