Tuesday, March 31, 2009

More on Gold

The UK Telegraph reports that Russia has recently said they would "favour the inclusion of gold bullion in the basket-weighting of a new world currency based on Special Drawing Rights issued by the International Monetary Fund."

The article is a helpful introduction to the idea of a gold standard. Here are a few helpful excerpts:

"The Gold Standard was the anchor of world finance in the 19th Century but began breaking down during the First World War as governments engaged in unprecedented spending. It collapsed in the 1930s when the British Empire, the US, and France all abandoned their parities."

"It is widely argued that the financial excesses and extreme debt leverage of the last quarter century would have been impossible - or less likely - under the discipline of gold."

I also recommend watching the video on gold investing from the Telegraph site.

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