Agoracom: Small Cap Investment - Golden Minerals Company - Very interesting long term pm indicator

Welcome To The Golden Minerals HUB On AGORACOM

Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.

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Scruffy

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Very interesting long term pm indicator

posted on Oct 06, 2009 11:20PM

I think this article is important for each of us to read and contemplate the possible effects on both gold and silver.

SDRs and the Endgame for the Dollar Reserve

Our take on this is that there is NO question that the US dollar will lose its reserve currency, and the Treasury and the Fed are aware of this.

The game being played now on the international stage, largely behind the scenes until recently, is with regard to what will take its place and how it will be implemented...

Much of what is hitting the news now is political jawboning ahead of the next realignment of the SDRs in 2010 after the recent summit in Istanbul to discuss this very topic that the news people in the US are denying ever even occurred.

"The basket composition is reviewed every five years by the Executive Board to ensure that it reflects the relative importance of currencies in the world’s trading and financial systems.In the most recent review (in November 2005), the weights of the currencies in the SDR basket were revised based on the value of the exports of goods and services and the amount of reserves denominated in the respective currencies which were held by other members of the IMF.These changes became effective on January 1, 2006. The next review will take place in late 2010".
"With effect from January 1, 2006, the IMF has determined that the four currencies that meet both selection criteria for inclusion in the SDR valuation basket will be assigned the following weights based on their roles in international trade and finance: U.S. dollar (44 percent), euro (34 percent), Japanese yen (11 percent), and pound sterling (11 percent)".

Max Keiser is hearing that the target composition will be weighted to 50 percent gold, in a return to a system more in keeping with the original Bretton Woods agreement.

http://jessescrossroadscafe.blogspot.com/2009/10/
sdrs-and-endgame-for-dollar-reserve.html

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