If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around (these banks) will deprive the people of all property until their children wake up homeless on the continent their fathers conquered - Thomas JeffersonInterestingly Ben Bernanke testified under oath in front of Congress that gold is not a currency and that Central Banks stockpile gold out of tradition. So if Germany could help fix Europe's current situation by unloading its gold reserves, why wouldn't it?
"German gold reserves must remain untouchable," Roesler, who is head of the Free Democrats (FDP), a junior partner in Chancellor Angela Merkel's coalition, told ARD televisionHere's the Reuters story: LINK Interesting huh? If gold is nothing more than an artifact of tradition - a barbarous relic according John Maynard Keynes - then why wouldn't Germany be more than happy to part with it? Why did the Bank of England recently explain that the markets can not see what the Central Banks are doing with their gold? Why won't the Federal Reserve subject itself to a bona fide independent audit of the U.S. gold in full public view? Why all this secrecy? After all, Bernanke seems to think that gold is nothing more than a museum piece...
Those questions, of course, are strictly rhetorical. Just as amusing is that the army of financial advisers in this coutnry are taught that gold is not an asset class. This is straight from the answer key to the Series 65 Registered Investment Adviser Exam: "An 'asset class' is a broad category of assets such as cash equivalents, stocks, bonds and tangible assets such as real estate...gold itself is not asset class." That's the kind of garbage your trusty financial adviser not only wants you to believe, but believes himself.
"You can not resist an idea whose time has come" - Victor Hugo...The idea of currency by fiat is starting to erode quickly. Germany just denied the idea of gold as is promoted by the U.S. financial industry and the Chairman of the Federal Reserve. Once the historically tested idea of gold comes into view by the masses, there will be an upside explosion in the price of gold and silver that will surprise even most current gold believers. I feel bad, sort of, for all the people in this country who are being led over the cliff by the financial advisor industry...got gold?