Reflections on Gold and Monetary Policy for the New Year

Reflections for a new year…

“The Fed wants you to believe it knows what it is doing.”

• Michael Shedlock

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“All the things the gold bugs said would happen…are happening.”

—Tom Dyson, Bonner Private Research

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“Gold… an investment in monetary disorder of which we surely have enough in the world.”

— James Grant

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“There has been a significant increase in demand from central banks to replace dollars with gold, and we’re just at the beginning of that trend. Gold will go up and the dollar will go down, so you’d be better off keeping your investment reserves in gold at this point.”  

— John Paulson

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“In order to back all outstanding currency with gold reserves, the price of gold would have to reach $8,800 per ounce, roughly five times higher than it is today.“

“If gold were to cover all money created by the Federal Reserve (which is equal to its currentliability of $8.4 trillion) the price of gold would have to be upwards of $32,000 per ounce (nearly eighteen times the current price of gold).”

 — Alex Gloyy, Eurasian Review

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“A U.S. dollar is an I.O.U. from the Federal Reserve Bank. It’s not backed by gold or silver. It’s a promissory note that doesn’t actually promise anything.”

— P.J. O’Rourke

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“The mystics have a keen appreciation for gold. Some have called it crystalized sunlight. The ancient alchemists used the same symbol for gold and the sun, a circle with a point in the middle, while the modern chemical symbol for gold, Au, comes from the Latin world for gold, “aurum,” which in turn come from the name Aurora, the goddess of the dawn.“

“Gold’s superior nature is honored in our daily usage of terms like gold prizes, golden ages, the golden rule, golden mean, and good as gold. In the East gold figures prominently in holy places and sacred occasions: rituals, festivals, and marriages.”

— Jim Clark, Real Money for Free People

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“In spite of all the rhetoric, we will go deeper in debt, the Fed will print more money, and the value of the dollar will continue to plummet.” – Ron Paul

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‘Today is already the tomorrow which the bad economists yesterday urged us to ignore.”

 — Henry Hazlitt