by Michael Noonan, Edge Trader Plus:
Based on several thousand years of history, and based on the last 100 years of fiats, gold will continue to rise as a store of value, and almost all fiats will fail, massively. Which fiats will continue? The Yuan and the Ruble, for two. The Panama Balboa is another possibility, but Panama will have to do some sorting out to get rid of the fiat US dollar, its paper currency. The official money of account is the Panama balboa, but it ceased printing around 1941, in favor of the US dollar. This little Central American country has been making preparations to disassociate from the fiat Federal Reserve Notes.
For all the gold China has been accumulating this past decade, it is unlikely that China will back the yuan by gold. It would be too problematic for what it would do to its economy. Russia has been a lesser buyer of gold, but it also has tremendous reserves that it mines every year, adding to its holdings. Its natural gas resource has taken center stage as a backing for the ruble. Russia will also unlikely want to back the ruble by gold.
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