InformedTrades
Register as a Member
    Why join? See our testimonials.

Register Front Page See Today's Posts Site
Map
Free Trading
Courses
Shop
Front Page > Forum Central > InformedTrades Front Page Stories

 
Thread Tools Search this Thread Display Modes
Old 01-28-2013, 08:18 AM   #1 (permalink)
InformedTrades Founder
 
Simit Patel's Avatar
 
Join Date: Mar 2008
Location: informedtrades
Posts: 5,960

Thanks Stats
Thanks (Given): 758
Thanks (Received): 609

INFOGRAPHIC: The Case for the Re-Monetization of Gold


Below is an infographic that attempts to explain the case for the re-monetization of gold.


The basic points are as follows:

1. The debt/GDP of the G20 in aggregate will soon be over 1
2. Central bank reserves of US dollars are declining, while gold reserves are rising. This suggests gold may be used to repay the debt.
3. External government debt (the amount of government bonds held outside the country) is a key statistic, as high external debt has long been a catalyst for currency devaluation and bond market chaos -- and governments have less control over how foreign debt holders will respond.
4. Using just the US and the Federal Reserve has an example, if the US wishes to pay of its 5.557 trillion in external debt with its 287 million ounces of gold, the gold price will need to be near $20,000 per ounce.
5. A sign this trend is underway is that the ECB has begun re-valuing its gold periodically on a marked-to-market basis. As a result gold has become a bigger part of the ECB's balance sheet, in spite of no real increase in the number of ounces it holds.
6. The big wild card here is a new international monetary agreement that would make it official and require countries to pay some or all of their debt in gold. Such an agreement could also involve large portions of the debt being cancelled, as well as regulations on how much gold banks must hold. One such regulation that is coming into place now is Basel III.



__________________
My IT Blog | My Trading Bio | Google+
Simit Patel is online now   Reply With Quote
 
Thanks NoJobRob thanked for this post
  




Tags
gold, infographic

Help InformedTrades grow. Click +1 if you enjoyed this thread.

Register to Comment
Thread Tools Search this Thread
Search this Thread:

Advanced Site Search
Display Modes

Posting Rules
You may not post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are Off



All times are GMT -5. The time now is 09:52 PM.


Creative Commons License

InformedTrades is dedicated to empowering traders with knowledge. Learn more about our mission statement, and our charity endeavors.

Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Search Engine Optimization by vBSEO 3.3.2
vBulletin Optimisation by vB Optimise (Reduced on this page: MySQL 9.68%).
vBCommerce I v2.0.0 Gold ©2010, PixelFX Studios
vBCredits v1.4 Copyright ©2007 - 2008, PixelFX Studios