So what if there's no gold if people are happy to take paper and electrons?
1:48p ET Thursday, July 24, 2014
Dear Friend of GATA and Gold:
Gold fund manager Egon von Greyerz, interviewed today by King World News, notes that gold deposit discoveries have collapsed and that the time required for turning a deposit into a mine has lengthened. Von Greyerz argues that this foretells much higher gold prices.
Not necessarily. For new deposits of paper are being found all the time -- it's a renewable resource -- and there always will be an infinite supply of electrons and numbers for use in assembling bank and investment house balance statements.
As long as "gold" investors are happy to accept paper and electrons instead, gold mining can stop entirely without having the slightest impact on gold's price. Indeed, all metal itself could vanish without consequence.
The key to the gold price is neither supply nor demand at all but whether investors and certain governments will ever wise up to the fractional-reserve gold banking system, whether they will ever realize that, as the British economist Peter Warburton wrote in 2001 --
-- the primary objective of central banking is to deprive the world of what he called a "stable numeraire."
That is, the key to the gold price is ... little GATA, which is pretty sad, but that's all there is so we'll have to make do as best we can.
Von Greyerz's interview is excerpted at the KWN blog here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
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