Terry,

... neither US, or rest of western world nor Russia or China backs their currency with gold today.

World wide inflation in all currencies, in it self, is not stabelizing any currency market. Hence I do not see rising gold prices benefitting Russia and China vs. US in that context alone.

However ... I did some thinking and speculation .... :

I could see China (in a ressource cartel with Russia) wanting Gold to go sky high AFTER a point where they have had very high gold accumulation (which I believe China might do have today ? ... but I dont have evidense ?? ) ... ... Right now in due time China tries to deleverage and swap accumulated US Dollar to other tangibles (perhaps also Gold ?)... Then at some point China could be in a position where they could benefit from disclosing their strategy. Then what could happen is a further destabilized and world wide dumping of the US dollar and a run for Gold among others. Gold would probably go sky high, US would likely enter into the hyper inflation scenario. China could at that point suggest and offer an alternative world currency, perhaps their own, partly or fully backed by gold and get a lot of support around the world.

This is ofcause pure speculation.... is it correct ?? Do we have evidence if China is actually accumulating gold? I believe this could be very interesting to find out.

I dont know ... BUT if correct, that factor would drive gold much much higher ower time.

Where would Tyhee be in this scenario?

Clearly higher gold prices would be a strong stimulus for Tyhee share price.

The Canadian dollar and economy would probably do better relative to USA and the US Dollar in such a situation; based on Canadas strong natural ressources.

I hear investors like Rogers recommending "buy Canada" now and in the long term, simply due to Canadas many ressources in the ground. In contratry he says "sell UK" do to their fast depleding oil ressources in the North Sea.

In any scenario one could argue:

1) Canada is not only a political stabel and safe mining country, but also

2) Canada is likely to be one of the strong economies in the future, due to the many ressources in the ground.

With reference to Rogers, That is likely to attract many investment money ( incl. Tyhee financing hopefully ) in the future.

Therefore, I believe that is two very posetive macro economic arguments in the short, medium and long term for sticking to, and at these levels accumulating, shares of Canadian based Tyhee.

Euro