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<p>[QUOTE=&quot;fatima, post: 1273569, member: 22143&quot;]I will be specific on this.&nbsp; I am talking about the central banks that issue the very currency that we are talking about.&nbsp; This would be the Federal Reserve, Bank of Japan, European Central Bank, Bank of China (well I&#039;m not sure if this is the correct name), Bank of England, etc.&nbsp;&nbsp; These are semi-quasi fiat currency operations of their respective governments and for the most part set the monetary policy for each of these areas.&nbsp;&nbsp; They all will directly claim that gold is a relic from the past but collectively hold multiple 10s of thousands of tons of the stuff and many of them are not very discretely trying to acquire more of it.&nbsp;&nbsp; </p><p><br /></p><p>Because these central banks must reconcile with each other, they more or less have to operate on a balance sheet basis and gold they hold is listed as an asset in regards to the backing.&nbsp;&nbsp; Furthermore, the gold is NOT listed in terms of the fiat currency they produce.&nbsp; This is even true even with the Federal Reserve.&nbsp; They all know that should they have to go back to the days of something like Brenton Woods, then it will be the tonnage of gold that will in part determine the worth of the currency.&nbsp;&nbsp; This is why gold is very different in how it is valued, priced and ultimately is the hedge against fiat failure.[/QUOTE]</p><p><br /></p>

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