Hello h_rattle,

Central banks have an agreement to sell a predetermined amount of gold per year to keep the price of gold under control so that they can maintain confidence in their fiat paper currencies. Fiat paper currencies are backed by a promise and nothing else and most likely will end up worthless given time. Some central banks have started to realize this and are beginning to buy gold again.

In the 1930's an ounce of gold would have bought you a good suit, it was valued at about $35/ounce at that time. One ounce of gold today will still buy you a good suit but it will take about $ 1,000 fiat to buy the suit. The last 2 Papa Bear markets lasted about 15 years each (approx. dates 1935-1945 & 1975 - 1990). Gold did very well during those periods and is presently moving in a strong upward channel formation. One way to stop reckless spending and printing of fiat money by governments is to bring back some form of the gold standard. Printing huge amounts of paper money can only lead to hyperinflation which is just another tax on the nation's people. IMO, it is better to accumulate gold which is tangible and is a store of value than to accumulate fiat dollars which are currently being massively diluted.

Further, the mining of gold creates real jobs which support the economy. There is a finite amount of gold and big discoveries are rare. The printing of money is infinite and can be done electronically with the stroke of a key. One job. And yes, government treasuries like to have the feeedom to print as much money as they wish to finance wars etc. We might have fewer wars if they needed real money to wage them.

bc