“Owning physical gold is like having a put option on your government and the financial system. And when you don’t have confidence in these things, the paper price of a gold contract that trades in a government-regulated commodities exchange is… irrelevant.” An important reminder from the SovereignMan.
The price of gold has taken a hit in the last few weeks dipping down to the $1,500’s. If you own gold and silver as ‘a put option on the financial system’ this temporary dip is of little concern, what you own is real money. And this week Patrick Barron explained why it is the dollar and not gold that is overvalued.
Continue reading “The Price of Gold”
Alasdair Macleod explains how “preference for money” impacts price levels and what role a shift in preferences will play in a ‘virtually certain’ new banking crisis.
“We are all aware, through application of logic if nothing else, that if you increase the quantity of money, prices will increase as that extra money is spent. What is less appreciated is that prices can change dramatically due to shifts in preference for money over goods.”
Continue reading “GoldMoney: Why price inflation will take off”
As Hyperinflation continues in Iran, it seems that some Iranians have discovered a simple way out of the mess imposed on them by international politics, Bitcoin.
Bloomberg’s Business Week spoke to a few Iranians who have found a solution in Bitcoin. “Iranians are resorting to virtual currency to move money into and out of the country in a way that Western authorities find hard to detect.”
Continue reading “Business Week: Dollar-Less Iranians Discover Virtual Currency”
Police in the Iranian capital of Tehran closed the city’s open currency market and arrested up to 100 people at the weekend, including Gold Coin dealers according to local reports.
Continue reading “Bullion Vault: Iran Arrests Gold Coin Dealers in Bid to Support Rial”
Text messages from LIBOR banksters, hyperinflation in Iran, introducing The Bitcoin Foundation, CFTC’s position limits rule thrown out, Bill Gate’s thoughts on digital currency and more.
Continue reading “Bits and Pieces 5thOct12”