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<p>[QUOTE=&quot;Juan Blanco, post: 1622698, member: 41665&quot;]I don&#039;t agree with <i>anyone </i>here. Happily! :smile And -- if anything here is preaching to the choir -- don&#039;t take my opinion as gospel either.</p><p><br /></p><p>Doubt I&#039;m the only one here who has lived and worked (or travelled at length) in &#039;two-currency&#039; countries. It works. Seeing that firsthand, I know that a &#039;gold-based fractional reserve currency&#039; is not only possible, it&#039;s historical fact. Many, many times over! And because it&#039;s existed before, it may again. </p><p><br /></p><p>That is not to say the Chinese <i>are </i>planning to &#039;back the Yuan&#039; (they <i>somehow </i>may, or not) <i>nor </i>that it&#039;s inevitable some country will. But it remains a distinct possibility Gold WILL re-emerge in a more explicit monetary form - say, a component/reserve in a future supra-currency. </p><p>[ATTACH]230700.vB[/ATTACH] </p><p><br /></p><p>Nevermind several thousand years of historical specie. Long-recognized <i>as a currency, </i>Gold is confirmed <i>today </i>as a transactional reserve asset by the ISO and World Bank; see ISO 4217. Any nabob&#039;s idiotic denial of that functional reality is irrelevant but telling - there&#039;s waaaay too much Paper-Bug blather (misinformation, lies, lunacy) on this site and elsewhere online. The trend favoring Gold as a monetary alternative is also well-established, already. So tune out the Paper-Bug liars, Gold deniers, &#039;Dollar Forever!&#039; fantasists and the ersatz Money-brainwashed... most of their &#039;thinking&#039; is make-believe, flawed straight-to-garbage. (And pity the fooled, only.) </p><p><br /></p><p>Here are a few defunct Paper currencies - unlike Gold, Remember any of these, in <i>your </i>lifetime? </p><p><a href="http://en.wikipedia.org/wiki/ISO_4217#Historical_currency_codes" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://en.wikipedia.org/wiki/ISO_4217#Historical_currency_codes" rel="nofollow">http://en.wikipedia.org/wiki/ISO_4217#Historical_currency_codes</a></p><p><br /></p><p>It&#039;s also important to recognize that EVEN IF a (hypothetical) Gold-transitional event event occurs in the near future, there&#039;s also no guarantee any little CTers here would realize <i>any direct benefits </i>either. On the balance though, individuals can &amp; should try to protect themselves from the local evils of Paper Fiat (Proof: several hundred failed Paper Currency Failures before ours.) It&#039;s easy enough to hold a portion of your wealth in Gold and other PMs and History shows that&#039;s generally a wise move. </p><p><br /></p><p>Various boogeyman scenarios jawboned here (Risk: &quot;investment&quot; schemes, robbery/confiscation, fake PMs, one period of manipulation, etc.) do not outweigh the numerous and increasingly obvious perils of Fiat Paper. But <i>prudence holding PM bullion</i> is mandatory anyway, and (I think) PMs remain a &quot;poor investment&quot; only because they&#039;re not really for that purpose (e.g. alpha, cap apprec, income, etc.) just a <i>reserve </i>or &#039;Rainy Day Fund.&#039;</p><p><br /></p><p>ALSO:</p><p>If committed to holding a <i>larger portion </i>of your wealth in PMs ( &gt;25%) you really ought to investigate the benefits/risks of <i>moderately </i>TRADING INVERSE PM ETFs in your own brokerage account. <b>You can neutralize (some) losses on the downside with inverse PM ETFs, if you take the time to <u>study and understand</u> the inevitable declines in a PM Bull mkt.</b> It&#039;s never too late to learn how (the web is awesome for that) - and you probably should ... IF you&#039;re a Gold-Bug hoarding a sizeable stash.</p><p><br /></p><p>Here are the better known LEVERAGED INVERSE ETFs used by US investors (for other markets: see what&#039;s available.) Caveat emptor! Read the prospectus, too.</p><p><br /></p><p>ProShares UltraShort Gold.... <b>GLL</b> </p><p>DB Gold Double Short ETN.... <b>DZZ</b></p><p><b><br /></b></p><p><b></b>ProShares UltraShort Silver.... <b>ZSL</b></p><p><b><br /></b></p><p><b></b>See for example: <a href="http://www.google.com/finance?q=NYSEARCA:ZSL" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://www.google.com/finance?q=NYSEARCA:ZSL" rel="nofollow">http://www.google.com/finance?q=NYSEARCA:ZSL</a>[/QUOTE]</p><p><br /></p>

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