Currencies and Rumours of Currencies

There has been a lot of talk about a new currency for the world, something to act as an alternative to the dollar. The article I am linking to today is just one out of countless articles now swirling around the net where some official person or bureaucracy calls for a new currency.

The one thing I can say on all this is that we should not get ahead of ourselves. By that I mean : Yes the US dollar is and will continue to decline into insignificance, but that is a long process. The world has been using the greenback for oil and other things for quite some time now and you don't just switch over to something else in one fell swoop. Moreover, China and others have significant dollar holdings and though they would like to get out of them, that too cannot happen instantaneously.

I'm sure many gold bugs are pleased as punch to see gold now well over 1000$ but this process we have been predicting will happen over years.

UN calls for new reserve currency

Even More on China and Gold

Yet another article on the influence the Asian elephant could have on gold.

Interesting how it is mentioned that gold is being promoted to the common man in China. (I bet Jim Cramer is giving the ole' bullish 'boo-yeah' to some financial stock as we speak) :

"As recently as 2002, the private ownership of gold was prohibited in China. You could be jailed if caught with any in your possession. Beginning in 2009, in a stunning about-face, the central government removed all restrictions. In fact, as Mineweb and other sources report now it’s actively pushing folks to buy some personal metal, with China's Central Television, the main state-owned television company, running news programs cum[sic] infomercials, letting the public know just how easy it is to purchase gold and silver as an investment."

Article : What The Heck Is Going On With China

Gold Coin Collection

I thought for my first post I would avoid any technical analysis or commentary about precious metals investing and instead link to a video of a guy who has an impressive gold coin collection. I counted the coins he has here and I think he has at least 30 or 35 thousand dollars in gold.

He mentioned in the comments that he has made the perhaps unwise decision to basically put all his savings into gold - now that is a genuine 'gold bug'! That's a bit too heavy an allocation into metals for me, but then again, if his entire life savings were in some fiat currency, that might not be very prudent either.