LETTER TO THE EDITOR — World’s governments can’t print gold

The comments made by David Gulley (“An historic juncture for gold,” T.N.M., Jan. 5-11/98) provide useful ammunition for those of us trying to persuade skeptics that gold has not had its day. Quite the reverse, in fact. For holders of worthless Asian assets, there are very few easily tradable alternatives; United States dollar bonds are one, and gold is another.

Here in Europe, the French and German governments are spearheading the creation of the so-called Euro, due to be launched next year. This has been designed by politicians (alarm bells should start ringing here) to replace the currencies of France, Germany and any other country willing to fudge the criteria for entry. This politically controlled monetary policy will ensure suspect currency from the start. As Europe’s citizens see their old money replaced by the kind used in the game Monopoly, they, like their Asian counterparts, will seek refuge in U.S. dollars and gold.

In today’s world, most governments are still borrowing just to pay interest on their debt, never mind repaying the principal. Such a process inevitably ends in tears.

So why invest in gold? Simple — it’s the only form of money which governments can’t print.

Peter Walker

Managing Director,

Scandinavian Gold Prospecting,

Ostersund, Sweden