There is no rush like a gold rush

The dye is cast. Three thousand years of history is shouting from the rooftops and making its way into our living rooms. The rush is on.

Does it really matter that we have all these primitive thoughts? After all what is it that the barbarians knew that we don't? Every system in history was based on the gold standard, and when most empires removed the gold content from their coins, replaced them with lesser metals and then proceeded headlong into mediocrity.

 How did all of this get started? Once upon a time some fellow came up with this idea which he named a bank. He was prepared to take in all types of  gold and silver, lock it all away in a safe place and issue a certificate stating that he was willing to exchange that certificate for gold at any time or place. That, ladies and gentleman, was your first currency note with a gold standard.

As time went by, we invented the telephone, TV, motor vehicles and computers. The brilliance of mankind knew no boundaries. The powers that be landed a man on the moon. Imagine that. Confidence was brimming, and gathered further strength with the collapse of communism. So then along came another fellow by name Nixon and convinced us (who needed convincing?) that as long as we had the almighty American Dollar, who needs a gold standard. After all, a nation's economic power is measured by the strength of its currency, and the dollar had swept all before it. Basically, the power to create money had been removed from the limitations of a gold standard and placed in the hands of Congress and The Federal Reserve. Like placing a cat in charge of the milk. Simple but true.

It has often been said that there is a thin line between self esteem and arrogance. Somewhere along the way that line was crossed.

So self esteem changed to arrogance and then greed was added to the mixture. Central banks had no need of this non-yielding asset and sold their gold, in hindsight, at ridiculous prices and replaced it with goverment debt. Everybody was coming to the party. Euphoria drowned out the solitary voices of warning. Who were these people trying to interrupt our party? Humanity had developed past this primitive ideology. Quiet! Great minds with great theories are at work here.

Do not interfere. Everybody has a home, a car and a dog to prove it. Sweet talking politicians joined in the celebrations.

Fast forward to today. Central Banks have ceased gold sales. The developing economies are now part and parcel of the same family. None of them are buying the American dream. There is a manouvering for power and new candidates are raising hands. Diversification is the name of the game. Gold is on the rise,and the once mighty US Dollar is in decline. We ask ourselves what we have done to future generations, while politicians try to hang onto power by the

skin of their teeth.

Uneasiness takes hold as the markets dictate a new order, and show us that we are human, after all. History is repeating itself whilst we observe in high definition or even in 3D. Nothing glitters like gold. This was correct for centuries, and it is correct today. Despite claims to the contrary, gold remains the only "Honest Currency".

H