via CEO.ca - Gold According To FT.com

FT.com has always added their fag to the fire(using the British connotation) when gold prices correct, and today is no exception. In a country which has absolutely no gold mining industry, they disparage gold as a turd polishing excercise. Of course, you would not put your gold on display at all, you would place it safely in a vault.

If you don't have a very robust gold exchange, then your currency will not garner purchasing power. Part of the reason the pound has suffered is the London gold exchange has less prominence in the world as a daily gold pricing fix.

Your money absolutely has to be exchangeable for gold and vice versa. You also need a mint that will stamp your unrefined gold into coins and bars. It doesn't occur to anyone that gold can be used for defeasement, because, after all, you ARE digging money out if the ground.

And then, of course, interest rates must trend below inflation for long periods.

The bottom is in.

http://on.ft.com/1pwexVr

http://on.ft.com/2dKw7kG

-F6