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Great Britain Gold
Olympic Minute: A Gold for Great Britain
Could we end up with a gold-backed monetary system?
The gold price has now stayed above $1500 since late April and is expected to reach $1600 this year and then continue to rise the following year due to growing demand from Asia. Indian demand for gold has been a major source of investment for years but now China is also acquiring gold at a rapidly fast pace. Combined with the growing demand from central banks you have a globally, long-term, uncontrollable physical gold demand.
Economists believe 20 year anniversaries are important and we have now had four of these anniversaries since 1931 when effectively the monetary system last collapsed after Austria became bankrupt, followed by Germany and then Great Britain. The similarities between then and now are clear to see so, could we see a return to a gold standard system in 2014, 100 years after the last collapse?
However, previously the majority of money earned from gold normally occurs at the end of these 20 year cycles, the current cycle started in approximately 2000-2001 so now is an ideal time for investors to buy gold and position themselves firmly in the market.
Countries such as Greece, who face billions of dollars of debt, could end up ditching the Euro as their main currency and opting to use their gold reserves to help establish another currency. Western nations do not want Greece to pull out of the Euro because other countries such as Ireland and Portugal could be close behind. This could cause the collapse of the Euro and then effectively start thecollapse of our paper-based monetary system. Is this why countries are increasing their official gold reserves instead of investing in Greece's or Portugal's debt?
The developed world is also plagued by uncertainty with countries such as the UK, USA and Portugal currently having divided governments, therefore making clear decisions at key moments in time has become challenging and is thus crippling confidence and creating foundations for critical situations.
Paper-money systems have never survived through-out time and there is a significant link to bad debt from paper money. Gold enforces discipline on the government and this could see a gold-standard currency being backed if paper collapses again.
With debt across the world well in excess of $100 trillion, everybody is facing a depression and, as the price of oil and cost of living continues to rise, people are beginning to panic and plan for the worst.
If we are to expect a collapse in 2014, the effects would be far worse than previously in 1913 and this leaves a 2-3 year window for investors to prepare. Therefore now would be the time to invest in gold before the stock market inevitably begins to reflect the economy. Could we even reach the point where demand for gold is so high that producers won't want to be paid in paper money?
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Frequently Asked Questions...
Will Great Britain finish ahead of Australia on medals?
As I write GB has 47 medals and Australia has 45. If I am not wrong Australia will pick up a gold or silver in the women's Basketball. The only other event, as far as I can see where either country has a chance of a medal in the remaining events is in the men's Marathon. THe Aussie in the marathon has a better PB than the Briton in the race. It seems possible the two nations - best of sporting pals at all times - will hug each other as they both end up with 47 medals.
Of course, GB will be ahead on golds.
Answer:
It doesn't matter both countries have done themselves proud and good on Great britain and I hope you are all barracking for the Opals to win the Gold we certainly would if it was the other way round.




















































































