It is very interesting to note that not long ago gold sold at $300.00 an ounce but since then, world events has affected its price greatly. The US being the world power it is and that the monetary standard is the American dollar world wide it can be said that the price of gold is tied in with the American dollar. As the value of the dollar receeds the price of gold rises. Same as oil I might add so that the status quo is not really changed due to inflation following the dollar value. So what if oil is $100 a barrel and a loaf of bread is $10.00.

Now the reason, I suspect, besides the failure of the business side of America's markets, is the funding of the wars in Afganastan and Iraq, etc. This has drained the treasury in a very deep way. As in WWII the only meaninful resources to fund a war is gold. Hoarding gold prior to a global war is essential. Japan ran out of gold as did Germany and partly the reason they could not sustain their aggression for lack of manufacturing armaments mainly.

If and when the US pulls out of the near East the power of American market will again strengthen the value of the dollar to the point where it will force the value of Gold down. If this does happen then for every ounce of gold that I have I want to be in cash. $1400 an ounce is a lot of bread.

If the US have no wars to fight I'm sure this will happen. The US has helped such major powers as Russia and China to become financially independent and cash surplus. What Cash? The American BUCK so far and that is why China is seeking gold in exchange. But they may be making a mistake. I think Russia and China are happy where they are economically.

The other hot spot which might affect recovery and change gold prices following a devaluation of the US dollar is North Korea. If things stabilize there I believe it is very possible for gold to take a great tumble as the US economy recovers and the currency appreciates.

So I encourage Chavez to start mining the gold while the going is good, for in the next 5 years, before gold is back to $800.00 as the posting of this article suggests. Goodbye to Vz oportunity for great wealth now if this happens and it is very possible.

I give Vheadline permission to print this.

Go KRY