PREPARE FOR NEW GOLD BACKED CURRENCY
by David N. Vaughn
Gold Letter, Inc.
November 12, 2004

And how is gold doing?

Gold is preparing to make a major break out. As I write this late Monday night gold is challenging 435 an ounce. The election is over now so the extra concerted efforts to control the gold price will let up partially. Gold continues to grow stronger each day, but it is still for the most part ignored by the masses.

But is gold ignored by all?

��gold is about to regain its preeminence.� Terry Neal, Economic Means to Freedom

And even as the world prepares for the coming destruction of the US Dollar new alternative currencies are being seriously & diligently studied.

�One proposal is the Terra (Latin for Earth�)� ��fully backed by a physical inventory of commodities�)� �Use of the Terra would automatically tend to counteract the prevalent business cycle, thereby improving the overall stability & predictability of the world's economic system� Benard Lietaer

And who is this character, Benard Leitaer?

��he was closely involved in the design & implementation of the ECU (aka the Euro, Europe's single currency). In 1997 he was Business Week�s �World Top Currency Trader.� ��such currency systems are critical for us to have in place in case we find ourselves in a less prosperous future�� www.dbweb.org/future.html

It is very interesting to know that even while the dollar is preparing to reach new lows & suffer severely that for years now the powers that be have been anticipating the dollars eventual decline & in preparation have been testing & studying new alternative currencies backed by physical commodities including gold.

�This was the third time in thirteen years of annual conferences that around 60 people from 16 countries assembled in Lesbensgarten (7-10 June 2001) � an ecovillage in Germany � to discuss an alternative or sustainable monetary system(s).� �It is almost certainly no coincidence that many people in all spheres of commerce & all over the world are painfully aware at the moment of the fragility of the present system.� �Fortunately many alternatives systems have had considerable & extremely successful trial runs, so that if monetary collapse happens now or in the future, there are viable examples at hand to create new systems.� Thelma Weeks, England, 2001

And the point in relating this is to drive home the fact that the currency problems of today have been anticipated for a very long time. And understanding these facts will help us to realize that many of the events happening today are not happening by chance but perhaps were planned or were at least anticipated. And it is very nice to know that these planners while preparing for these dollar & currency crises also planned for gold to eventually play an important role in the establishment of a new potential alternative currency.

Is your Christmas tree up yet?

Ours is. My wife found a nice 9 foot artificial tree she bought earlier in the week. Now the tree sits adorned before the large picture window in the living room. From the living room window you can see the yard full of hard wood trees with all their leaves scattered on the ground. And with all the leaves off the branches you can view the lake now at the bottom of the hill.

Why wait just a couple of weeks before Christmas to put up the tree?

Awful lot of work for just a short time. Kind of like going camping for only one night & putting the tent up one day & taking it down the very next. Better to leave the blasted thing on the ground the whole summer rather than having to dismantle it after only one nights use.

It's good to learn all these little tricks for enjoying the holidays a little longer.

Too bad there are no tricks to be employed for enjoying investing in gold though. Did you know that even as we watch gold moving higher than it has climbed for 20 years that folks are liquidating their gold stocks? I imagine once gold surpasses the 440 & the 450 mark that everyone will all be on the phone calling back their broker to reestablish their gold positions.

The mainstream media may be systemically bashing gold along with the world's central banks but at the appropriate time gold's future role will be revealed. And maybe that role will be as backing for a new alternative currency to replace the dollar.

I learned many years ago that the key to understanding �trends� is to make every attempt to always �follow the money.� And with the Internet today & the willingness to spend time searching we can discover all kinds of interesting data that will help us to determine future �trends.�

And if the dollar is slowly plummeting who then is doing the selling?

��the market has been rife with rumours that the latest wave of selling has been led by foreign governments seeking to cut their exposure to US assets.� �India and Russia have reportedly been selling US assets, as well as petrodollar-rich Middle Eastern investors.� �China, which has $515bn of reserves, was also said to be selling dollars and buying Asian currencies in readiness to switch the renminbi's dollar peg to a basket arrangement, something Chinese officials have increasingly hinted at. Any re-allocation could push the dollar sharply lower and Treasury yields markedly higher.� Steve Johnson & Andrew Balls, 11-7-2004

And if you can really understand & comprehend the text of the article you just read above you would be buying gold & gold related equities with reckless abandon!

© 2004 David N. Vaughn
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