Yes, Turd is correct, there very well could be Nordic Euro as well as a Pan-Asia currency, and quite possibly a Dollar that will include the US, Canada, and Mexico. The Euro has the architecture where gold is held as a reserve asset at the ECB and is marked to market quarterly. This means the value in Euros floats with the market price of gold. This is the first step to Freegold. I expect the Asian currency will emulate the Euro in the same manner. The dollar will undergo a massive revaluation much lower than the present and I expect the Fed to be redefined under the same architecture where the money base will be held at some ratio to gold held in reserve, marked to market.
Freegold is coming and savers of dollars are going to have their stored wealth in dollars redefined right along with the dollar. The new definition of the dollar will look and feel like a fraction of a cent today. On the other hand, if your savings are in real physical ounces of gold, their definition will remain the same along with their purchasing power.
The object of owning physical is to shuttle your stored wealth through the redefinition of our money, and to do so unscathed. On the other side, very few people will have any money other than what they earn at work. Consumers will suffer alright, but will largely get to the other side with what they owned before, nothing. Savers if in dollars will lose it all.
For those who bring their wealth to the other side, there will be bargains galore because demand will have been destroyed. You must have access to money and credit to maintain the robust consumer demand we are familiar with. Both will be scarce. Holders of money will be rare and in great demand. That means bargain city if you are lucky enough to be one. So be one! Get with the program with Freegold at fofoa.blogspot.com
I guess if there’s a fundamental “rationale” for today’s trade it’s this: The global currency structure is going to be dramatically changing. The economic disruption caused by this will be significant. Therefore, sell commodities such as copper and crude but buy gold as a “safe haven” asset. Sounds nice, doesn’t it. Sounds perfectly rational. Too bad that’s not what’s going on. Instead, mindless computers which have been programmed to “buy X and sell Y” at the push of a button are in charge and moving markets. As an example, last evening the grains were all UP about 10 cents on supply and weather concerns…real fundamentals. But that doesn’t matter to WOPR. Nope. WOPR see rising dollar. WOPR sell everything.
For today, let’s see if humans intervene and begin buying back what the computers sold. IF there is genuine (non-artificial) intelligence in the trade today, established support levels will hold once again and the commodities should turn. Crude looks very firm at 96. DrC should be well-bid between 393-395 and silver should not trade below 34.
Eventually, perhaps even in the not too distant future, today’s euro is going to be replaced with a new “Nordic” euro. Then the East Asian nations will all combine to sponsor their own, regional trading currency and the dollar will be left for dead. WHEN this happens, gold and silver will be much, much higher in price than they are today. That doesn’t matter much to WOPR, though. WOPR only knows today and, today, WOPR is selling.
More after the close. TF