Saturday, October 11, 2008

NEWS: Gold CAN back all the world's money

... says Mike Hewitt in this article. Looking at gold in all its forms and relating it to the world's money that actually circulates (as opposed to all the money on the account books), he arrives at an estimated price of $738 per ounce.

That's not so far off the long-term median price of gold, adjusted for inflation - see below for some attempts to describe that relationship.

Maybe it could work.


dearieme said...

A crash is a crash is a crash
With shares reduced to mere trash
They fall without limit
A catastrophe, innit?
Destroying all of our cash.

Sackerson said...

You're bard!

dearieshe said...

Never mind my husband's blethers. Now: whatever happened to Alitalia? It seems as if just yesterday it was about to explode and then it vanished from the papers.

Sackerson said...

News to me, DS - could Hatfield Girl tell you more? I think she uses them a lot, doesn't she?

hatfield girl said...

No, S, I fly Lufthansa European Regional Airways. To London I take Meridiana.

Alitalia is being taken into Lufthansa with a payment to Italian interests on the way, which is what Berlusconi's intervention was all about.

I never could bear those green and yellow colour schemes. Grey. Grey and black are elegant.

deariewee said...

Sometimes my parents' conversations are a little unseemly.

Sackerson said...

How many more Dearies are there?