Tuesday, January 03, 2006

Is Gold Getting Back Its Luster?

I'm an admitted goldaholic. It just runs in my blood. There's nothing scientific about it, at least not at my level of predilection. I mean, I have no statistical analyses, computer models, or other mathematics voodoo to substantiate it; but you have to admit that the history of economics puts the metal in a pretty prominent position, if not to say on an outright pedestal.

And apparently I'm not the only one. The Chinese have quietly been liberalizing their internal gold market and investing in gold mining operations. Lookie here at what I've just noticed over at www.gold.org here and here. The most interesting part describes Chinese government interest in receiving suggestions from larger-cap companies on creating a new gold trading company.

Can you imagine what would happen if the Chinese suddenly decided to dump all those Fed treasuries and hop onto a new gold bandwagon? And wouldn't it be satisfying for us free-marketers to see a kind of populist-inspired gold standard arising out of the Zhaoyuan streets, or maybe some New Delhi back alley. Personally, I live to see the day.

Also, this looks interesting. The Chinese are introducing some new currency trading policy. Can anyone tell me what this means?


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