No. I think by then their currency (paper) will be so recognized for what it is, no amount of it will be accepted by a large holder of gold. It might be possible for individuals to trade small amounts for paper currency. It depends on how bad it gets. In Zimbabwe gold simply does not trade for the country's currency.

Countries which are currently broke, where are they going to get large amounts of money of any recognizable value to purchase gold? They might be able to (and perhaps will) trade off portions of their country for gold at the top; they are stupid enough to do that.

Smart money got into gold right around the 300 - 400 $/oz. level. The trend was there to see if one was looking for it and the fundamentals were in place.

Now that the trend has been established, has not failed, and the fundamentals remain good, institutions and countries with wealth are just beginning to purchase. In Elliott Wave terminology the activities we are now seeing from Russia, China, and some institutions are indicative of the earlier stages of the third wave.

The public comes in throughout and after the peak, to some extent, in the fifth wave.

P.