Leading economies should consider readopting a modified global gold standard, according to Robert Zoellick the president of the World Bank. Wow, this op-ed piece by the World Bank president last weekend in the Financial Times put us on our heels! If you recall it was on September 9th this year that we announced a gold currency would be a major trend in the next decade.
Of course most people saying this or even bringing the idea up are very far from conventional thought, so hearing it from the World Bank president who recommends the G-20 to seriously consider it at their next meeting was pretty shocking to say the least.
Now with all due respect to the World Bank president, the verbal debate at the G-20 would be historic, but the real debate is already in full swing. China, Russia, and other emerging markets are buying gold by the ton, literally. In fact, as mentioned in our Gold 1980 Vs Today trend alert, in Malaysia a private Islamic currency has already been introduced into the market place.
Being used in everyday transactions by business owners, cab drivers, and others choosing gold and silver coins rather than the official government made money. Gold has recently surged to record highs as global investors are seeking safety from a pending currency war.
Last week we saw Ben Bernanke bring a bazooka filled with Federal Reserve notes ready to drop QE2 on the currency markets. All of this also comes right after a mainstream money manager, Shayne McGuire, predicting that we would see gold hit 10,000 dollars per ounce. Mr. McGuire runs a 330 million dollar gold portfolio at the Teacher Retirement System of Texas.
That’s right, this isn’t James Turk making this prediction, this is a pension fund manager. Of course since making that call he has been heavily ridiculed from the mainstream media, as well as, Wall St. analysts, but in our opinion, being ridiculed by the mainstream media only strengthens our confidence in his prediction. If there’s one trend that stays consistent, it’s that the conventional wisdom is almost always dead wrong.
In any event, the above is all great news for the smart money invested in future trends.