GOLD

[ananda77]

...with the ongoing enormous increase in the amount of paper money in mind (and a pick up in inflation in just a few months time -A SURE BET-), a study by Peter Millar in 2006:

""The Relevance and Importance of Gold in the World Monetary System"

concluded that a 'Seven-fold increase in gold [is] needed to avert debt depression'

excerpts: "In the second half of the 20th century we saw a repeat of the first three phases of the same cycle:

"-- Phase 1: Stability from 1944 to 1968 under a gold standard.

"-- Phase 2: Inflation from 1968 to 1981, which caused and justified another buildup of debt.

"-- Phase 3: Disinflation from 1981 until the end of the 20th century, and maybe to the present.

"However, it appears that Phase 4 (instability and ultimately deflation due to excessive debt) may have started. If so, Phase 5 (revaluation of the gold price to raise the monetary value of the world monetary base and hence reduce the burden of debt) becomes likely or inevitable. The extent of that revaluation would need to be major according to our calculations, probably by a factor of at least seven times, possibly up to 20 times the current price of gold."

read the full study here: http://www.gata.org/node/4843

...and more "Comparison shows gold underpriced by US$ 400" here:

http://tinyurl.com/23tdgu


Kind Regards