Gold dipped to $921 per ounce Yesterday. Today it’s even lower at $915. It may go lower than $900, but I don’t expect it to go lower than the previous dip, which bottomed at about $860, in early April. This may be the last opportunity to buy.
Last May 22nd I predicted that gold would fetch $1000 an ounce by this month. It doesn’t look like it’s going to, this week being the last week of June. I am now looking at gold to reach $1000 in July.
I have just completed reading “Money Meltdown” by Judy Shelton. Even though this book was written in the context of the communist rout and not the context of the current world financial calamity, I would recommend it to anybody who wants to know where we’re headed. Ms. Shelton is advocating a second Bretton Woods accord, similar to the one enacted by tens of nations in 1944. The 1944 accord was heavily influenced by Keynes, who believed that government has the right and obligation to manipulate a nation’s currency. The Bretton Woods accord was dealt its death blow by Nixon in the early 1970s, because the U.S. was unable to honor the convertibility of the dollar to gold. Ms. Shelton traces the history of world currency relations from Bretton Woods on, and in the process examines various experiments and adventures that world currency relations have gone through. It is very convincingly clear to me that we need to go back to a gold standard, in which first the dollar and then other currencies start being convertible to gold. Artificial inflation, inflation brought upon by governments by increasing the money supply, is evil. We have to get rid of this scourge of the earth as soon as we can, for the sake of our children and grand-children.