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>Einstein, Physics, Gold and The Formula To End Economic Decay - Mark O'Byrne - gold.ie
Real value in gold!
What will eventually happen to the precious metals market may perhaps be seen in this weeks movements in the oil market. I will suggest that once the derivatives traders realized that they could no longer make money driving down oil prices, they reversed course and drove prices up from a 37.90 low on Monday to a close of 45.26 on Friday. A gain of 19 percent on the basis price alone. Once the political and substantive factors have played out in the precious metals, traders will take advantage of a similar profit opportunity.
Precious metals are seen as competing with traditional investments, by providing value when none can be seen elsewhere. They are historically a refuge and store of value. The truth is, people look for and need real value in their lives. Governments today, on the other hand, know that huge increases in debt at all levels has left little of real or lasting value in traditional investments. Stock market prices, for instance, are nothing but a consensus opinion about the future. They will do "whatever it takes" to keep money in these investments, and away from alternatives. Sooner or later, however, reality prevails.
The biggest problem in the world economy today is lack of liquidity. When markets go down, there is less value and therefore less money avaiable (the wealth effect in reverse). It may be that ALL investments - commodities, interest rates, stocks, wages, and of course precious metals must go up to get us out of the debt hole we have dug for ourselves.


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Beginning of the headline :We continue to have a wonderful dialogue with and frequent editorial submissions from readers and clients. Today, we have a thought provoking and important article that should greatly contribute to the debate on the merits of continuing to use artificial money.  David Bryan draws on the genius of Einstein and uses science as the basis for policies that would end economic decay and rejuvenate local and national economies and indeed the global economy.Einstein, Physics, Gold and The Formula To End... Read More
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