Our friend J.S. writes: "It has been all over
the news as well as in GATA Dispatches that countries are starting to use
gold to facilitate their international trade. Since paper gold is much
greater than the supply of real metal, do you know if these international
trade transactions in gold are using the paper price or are they revaluing
gold upward to reflect the scarcer supply of real metal?"
This is an excellent question. GATA doesn't know the
answer but if we were paying in gold, as China is said to be doing, and if we
knew about the gold price suppression scheme, as China does --
-- we well might ascribe to
our gold a value much higher than the price reported by the futures markets. But we
can only guess.