May 20, 2011 — No, not the second coming most are familiar with, but there are many astute financial Gurus who are proclaiming that not only is the sky falling but that within the next 60 months the once mighty US Dollar will no longer be the world currency of choice.
If it is true that, according to those gurus, the (re)-monetization of gold (established as legal tender) is underway and that the world ‘players’ (Central Banks, insurance companies and other institutional investors including Countries) are preparing for gold to possibly return as the world reserve currency, then what will that really mean to the ‘biz’?
Well, a lot. But first understand that Mexico, for example, during the first three months of 2011 purchased and increased their bullion holdings from about 7 tonnes to a little over 100 tonnes and did so as a long term investment strategy. The acquisition was reportedly one of the largest purchases by any country in the last ten years. Hmmm!
Of course they aren’t alone as the USA, China, Switzerland, Japan, Russia, India and others are all buying and even if gold doesn’t become the world reserve currency, as ‘some’ are predicting, there are ‘others’ who are spouting that some other fiat currency may become the ‘money’ of choice which will then be attached to the oil industry and like the dollar is today, all ‘buys’ will be processed in that “tender”.
Only the world-players know what may happen but I read a seemingly respected perspective several years back that suggested one of the reasons Saddam Hussein was really ‘taken-out’ by the ‘oil-rich and entrenched’ former US administration was because with Saddam’s vast oil reserves he was attempting to get the US Dollar out of the oil-buying picture and replace it with some other currency…
What I do know for sure is that many countries, including the USA, are beyond being broke, that many States and cities in this nation can’t rub two nickels together, that here and abroad there is much political and financial turmoil and whatever is coming down the chute everyone can be assured it is on its way.
And in our industry, from the developer all the way down to the maid, everyone needs to be prepared for a potential second financial collapse like we all experienced in ’08, because the future’s uncertain and the end is always near (Thank you Jim Morrison of the Doors).
Email Scoop: [email protected]
©2011 Inside The Gate