“All of a sudden for the first time in 20 years the central banks aren’t sellers of gold. I think we’re in a window here where gold is effectively the world’s second reserve currency. It’s not acknowledged publicly and people aren’t aware of it but I believe gold is the second reserve currency behind the dollar. Depending on what government policy does will depend on whether gold becomes more dominant. I think fiat currencies are here to stay but what most people have not yet recognized – James Turk has recognized it; he’s the founder of GoldMoney.com – is that during the next long wave advance gold will become even more important. [Turk] has created a new currency based on gold. If you combine the data system of the Internet with gold and with secure vault storage in Switzerland or London, Digital Gold Currency has the potential to become huge. Right now you can open an account with DGC at any given time and you can move in and out into other currencies into your gold account. It’s coming.

Imagine yourself as a Wal-Mart or an IBM and you operate in hundreds of countries and you have to hedge your currencies in all these countries. With James Turk’s company, businesses can open an account in Digital Gold Currency and operate in a way that prevents their having to do a lot of the hedging and eliminate a lot of the expenses they incur in their hedging activities. That’s one reason why I’m optimistic about the drivers of the next long wave advance.

Object oriented programming is another thing I’d like to mention that’s going to be a dominant force in the next advance. What you see is that these are the technologies that selected by industry during the long wave winter and begin to be capitalized but they don’t get fully implemented until the advance. For instance, the object oriented paradigm, which was converted to the object oriented computer programming approach, is making the world more efficient. But it’s also doing a few other things. The world really is a loosely coupled object model and object oriented programming, or OOP, is realizing that and allows companies to deploy in a more efficient manner. I think OOP is going to be a major driver in the next advance of the long wave. There’s also a connection between OOP (object oriented programming) and digital gold currency because under the hood of the systems running major corporations and banking institutions is an object oriented paradigm, a view of the world, which allows everyone to operate more efficiently and what it allows is for your computer systems to more intelligently reflect the real world. The way this will play into Digital Gold Currency (DGC) is that it will be a driver to make DGC a logical option for people. I think there will be a combination of private digital gold currency banks as well as sovereign players. I think you’ll see certain countries buying into Digital Gold Currency and effectively establishing sovereign DGC systems.”

In another question from Clif Droke about what realistically can be done to balance the power of the Federal Reserve, Barker answered:

“I sincerely believe that Digital Gold Currency (DGC) will balance the Fed; it’s coming. The Internet has met gold and secure vaults in Switzerland, London or New York and we’re going to have international currency. It’s interesting that for the first time in 20 years central banks are no longer selling gold, they’re holding it.

I think what we’re effectively seeing is the development of the world’s second reserve currency. You’re going to see DGC combined with the Internet to see some very interesting dynamics in the currency market. I can actually see Fort Knox being turned into a Digital Gold Currency bank before this crisis is over with independence from the Federal Reserve and run by the U.S. Treasury.

So if you had a central bank that had only a price stability mandate and actually maintained higher reserve requirements and didn’t juice the system, and if you also had a competing Digital Gold Currency system, it would make for a very interesting world and I think it’s where we’re headed.”

David Knox Barker is the founder of Long Wave Dynamics, LLC, and the publisher and editor of The Long Wave Dynamics Letter. Barker is one of the world’s foremost experts on the economic long wave and stock market cycles. He is the author of Jubilee on Wall Street (2009), published earlier as The K Wave (1995) by McGraw-Hill. He is a writer, inventor, entrepreneur, technical market analyst and world-systems analyst. He has researched and written on the impact of the long wave on international financial markets and the international political economy for over twenty-five years. He has applied long wave dynamics to entrepreneurial business development decisions throughout his business career. Barker was founder and CEO for ten years from 1997 to 2007 of a successful life sciences market research and marketing services company, serving a majority of the top 20 global life science companies. Barker holds a bachelor’s degree in finance and a master’s degree in political science.

Source: http://themonetaryfuture.blogspot.com/2010/04/digital-gold-currency-and-establishment.html

Ref-link: https://www.gbullion.com/?ref=669839

All transactions are made in system digital currency – gB, wherein 1 gB is equal to 1 gold gram. After the purchase gold bars (of 99, 5% or higher purity) are stored in the specialized secure Vault while corresponding quantity of gold grams (gB) is transferred to electronic gBullion client account.

At any time user can exchange digital gold (gB) for real gold and obtain gold bars from a Vault located in UAE, or take delivery to specified address. Besides gB holder can transfer his digital gold (gB) to another gBullion user. All transfers are instant and free.

Source:http://news.yahoo.com/s/prweb/20100310/bs_prweb/prweb3696304_1

Those who attentively observe the world economic news must have noticed how much the attitude to China has recently changed.

Only yesterday the world press teemed with articles forecasting China would save the world economy and take a leading position in the world. The former statement caused everybody’s enthusiasm while the latter was not so univocal and even seemed threatening for many. Now everything has radically changed. The connotation of the comments is not that pathetic, and more authors tend to impart negative color to this theme in their articles. China – from the savior of the world economy – has turned into its almost main threat. They report it quite in this key – the time-bomb.

Let’s see what’s happened? To tell the truth it’s hard to find an unambiguous answer because Chinese economic policy is being criticized from quite different or even opposite perspectives. And the fact that these perspectives are suggested simultaneously proves the idea that tacit taboo on this critics has been removed and each in his own way started writing about it.

This taboo on critics of China, if any, who, why and when put and removed it? Let’s leave it for conspiracy specialists who are good at that, and try to understand the underlying reasons of today’s claims to China.

Firstly, these claims are from those who believe that the world economy is coming out from crisis and the forced devaluation of the yuan is clogging the process of recovery of American and European economies. It’s almost an official position and if we analyze the last statements of the official establishment of the USA and Europe we’ll see the traces of just that very opinion. This opinion is interesting for the following points. If the world economy does really come from crisis it does it not without China’s help. Remember the first eight months many countries have not seen the way-out and set hopes only upon China which got not a word of gratitude for that. The world economy happened to come out from crisis by itself. Many observers are very vague about the reasons of such radical turn, and speak of some ‘collective efforts’ behind which individual efforts of the Chinese government are definitely hidden. And it goes without saying that all these collective efforts were nothing but piecrust declarations whereas half trillion dollar credits extended by China bank system is an undeniable fact. But today it is recommended that China should write off all these huge sums for dead loss as these credits were extended on expansion of export production, and strengthening of the yuan will whittle away the export potential of China. It’s the extra sacrifice China should put on the altar of collective efforts. It’s nobody’s business what will happen to millions of the Chinese who’ll be and who are already dismissed. As well as what will the possible social burst result in. The world economy is surely more important and – from the perspective of many people – without China is more dangerous.

The second perspective is a variation of the first one. The difference is only in that its supporters don’t agree that the world economy is coming out from crisis. They say that all hopes on China turned to be vain, and China’s protectionist policy only hinders other countries from recovery. And but for China they would have long come out from crisis. This position is more consistent and doesn’t imply any dubious reticence. Why, if crisis continues there’s nothing to thank China for. Moreover, in terms of ‘collective efforts’ they should be responsible almost for all the consequences. Official authorities of the USA and Europe would be glad to share this opinion but they cannot admit that crisis continues. That’s why it’s the independent experts who are to develop this point of view.

It seems that neither the first nor the second perspective reflect the reasons of such pressure on China. Thus, we need the third idea to cross all t’s. According to this point of view there’s a huge estate bubble in China now that is just about bursting, and if it does its impact will be more devastating for the whole world. The signs of the Chinese bubble are evident. For Chinese the leadership they are evident too. And it’s obvious that the USA and Europe are trying to separate from China not to be splashed with. It’s doubtful that they will manage to do it but there’s no harm in trying.

So, what do China think? Why did they plunge into this gamble in which its partners try to leave it alone with all the problems. It looks as if China had swallowed the old propagandistic bait made from talks about Chinese role in the world economic drama and the position of a leading lady in the troupe after the performance ends.

Thus, it seems our numbers of the former hosts of the safe haven will grow soon.

Recent studies have shown that over the past 50 years, the most profitable type of investment gold was. However, analysts argue that in the future gold will reveal their capabilities more in connection with not very strong position of the dollar and oil.

Banking consultants, who over the past few years have witnessed the irreparable damage that caused investors crisis, also speak of investment gold means to. Further still they strongly recommend to invest gold to keep holdings in positive rate. Its particular appeal of investing in gold obtained after the 2008 after depreciated investments in real estate have appeared. Yet it is real estate topped the lists of the most presentable of a stable enrichment. And, at a time when gold has continued to show steady growth up to 17%, real estate fell into negative. Thus future of gold perspective as real estate was became fuzzy.

The best way to invest gold is to put up in physical gold, e.g. bullions or coins. Investment coins are also a profitable and reliable method of investment for small-scale investors. This is a convenient option for those who prefer cash gold. Greatest value from the fact that offers physical gold has gold bullion, but coins keep a strong interest because of their numismatic value. In future gold coins, as specialists predict, will make a reason to invest gold clearer.

Market of gold is very interesting if you decide to start working with it. It’s very fast-moving, but its hoardings are long-term ones. For gold, important fluctuations in the dollar exchange rate against the euro and yen are very important. The weaker dollar to these currencies, the more eternal metal is. Similar situation exists with oil prices. With the growth of its value investors are beginning to hedge the risk of inflation by buying gold. In the medium term price of gold will rise.

Gold in the current situation is most interesting in terms of investment. Slight rise in prices for it will ensure higher energy costs and labor costs. Now an opinion that in terms of significantly heightened political instability, soaring oil prices and the rapid industrialization of eastern countries like China and India gold could rapidly grow up to 1,500-2,000 dollars per ounce is very popular. In addition to various macroeconomic factors should be considered a factor of seasonality too. The yield when you invest gold depends on how carefully you select the time to enter the market. The best time to buy physical gold is from mid-June to mid-August and in January-February, when prices are at its lowest level. But in common investment gold has to offer is all-season due to opportunity to open metals accounts. The yield of this type of investment is more than 15% per annum.

But those who virtually live with this market is already past five years, say that no matter whether the investor chooses (physical party) metal account or physical gold, he would reach a stable profit. In future gold may show an unexpected potential for growth. This does not mean that every man in the street should think about investment gold has to propose, but opens up new horizons for those who are willing to invest gold both dollars-and-cents and mind-and-thoughts. At the same time, the prospects for a collapse of such a market are not expected, so you can safely invest gold in the long term. In this regard, however, would make more sense to give preference to physical gold, as its future looks strong. In the nearest future gold accounts would also be stable, but they can not give such a margin, as in the period from 2007 to 2009.

The Royal Mint of the UK decided to get use of the growing demand for gold and, according to data obtained by Bloomberg News, quadrupled production of gold coins in the third quarter of this year.

During the period from June to September Great Britain has output 32,735.8 ounces from 7,500.2 ounces a year before (troy ounce is equal to 31.1 g). As data show, production has been more than tripled in the first nine months. Along with that silver coins output also rose, yet in the first nine months it has gained only about 31 percent, to 278, 38 ounces.

The USA, Austria and many other countries also began coining more coins. The US Mint more than doubled sales of American Eagle, in the first nine months to 954,000ounces. Muenze Oesterreich AG, the Austrian mint, the world’s largest marketer of pure gold coins, sold 1.9 million ounces of gold so far in 2009, said its President Kurt Meyer.

It’s remarkable that it’s not only state organizations that show an interest in gold. Harrods Ltd., the London department store, began selling gold bars and coins in October, for the first time since 1834.

In the business world, everyone is paid in two coins: cash and experience. Take the experience first; the cash will come later

Harold Geneen

Why do we need a blog about gold? First of all it was conceived as a navigator and assistant in the investment world. Last five years, gold has been showing an undying upward trend. This year it has even crossed a significant boundary in 1000 dollars per troy ounce. However, the gold market is very dynamic, and therefore actual advice will never be superfluous. Such a gold blog could become a gold mine for you.

If we talk about gold as a means of investment, there is need to mention coins and bullions. Last four years gold coin has become more marketable than a barrel of oil equivalent. Isn’t it a good index? But what makes gold bullion coins can’t do. Analysts said that the coins are not so operable like bullions do. The reason lies in the fact that the content of pure gold in the bullion can be easily calculated, and hence it is possible easier to sell it. Therefore, in recent years, gold jewelry as a means of investment significantly loses to coins, bullions and bar.

In any case, owners of gold should be constantly listening to the information in the blog about gold. And, although, in the coming years is predicted stable position of the metal, our gold blog will indicate whether situation on market is stable or not. Especially our articles would be interesting not for those keeping their savings in gold bullions coins or bar, but for those who prefer gold accs.

In addition to bars and coins, banks offer so-called ‘metals accounts’. Client money bankers will convert to gold, silver or platinum. In the future, precious metals can bribe or, conversely, to sell. A profit is retrieved in cash or gold. By the way, up to recent years, namely metals accounts were the most profitable bank proposal. To learn how profitable each type of gold investment is, search in our gold blog for this year’s topics.

The growth of gold market still remains in question. In 2004, slightly hard to believe $750 per troy ounce, now the most extensive estimates, there is nothing to prevent the gold and climb up to 2,000 dollars. So this is the reason why some of the savings will be stored in gold bullion coins or gold bars. By the way, coins are considered more long-term assets, rather than bullion, because their value increases not only with the value of the precious metal, but also with the value of a single gold coin. For example most valuable gold coin – The 1933 Double Eagle – was auctioned and sold for almost $ 7,600,000. Thus gold coins are estimated by emission time, but also by brand (Olympic coins or Philarmonic coins). Fresh price on coins you can get on auctions like Austine, for example.

However, statistics coins lose as a means of savings. This explains the presence of an alloy of gold coins, as well as less demand for coins from banks, in whose hands, in many countries gold activity is concentrated.

But my blog about gold doesn’t tell about separate coins or gold bars or bullion. Its main goal is to provide the reader with as much information about when these same coin or bullion is to buy or sell. On the pages of my gold blog you will not only learn fresh quotes, but you will see that it is possible to make a fortune on gold. Here you will read the most recent analysis. And after this you can decide is it worth to sell your coins or open a metals account. That’s why gold about blog is really needed.

The growth of new bubbles in different world economy sectors had scarcely stirred up the expert community as the old bubble at once rose to the surface. Dubai World state-owned corporation asked for restructuring of its debts and all the world considered it to be an actual declaration of default of not the corporation only but of the Dubai Emirate in whole.

No wonder this story goes as it does. It’s an open secret that the real estate market in Dubai has long been declined. Moreover, for everybody Dubai has become an ideal sample of bursting bubble. Thus, if anybody supposed that the money he had lent to Dubai and buried it in their ambitious projects would someday come back out of the blue to the creditors, he was surely a thoughtless and inadequate person.

But the problem is not only with Dubai. This spring IMF has estimated the world financial system toxic assets at $4 trillion. To our mind their estimate is understated but that’s not the point. The point is that today only $1.5-1.75 assets are written off whereas the rest is just waiting its turn and all the events concerning Dubai are just minor but quite remarkable episode of an impending drama. But in fact everybody has suddenly forgotten about toxic assets and changed for the green shoots which without fail have become full-grown bubbles promising a new series of toxic assets.

The first markets response was quite natural. They began fast coming out from risk assets (the fastest one – from oil). Dollar, considered the securest asset regardless, began strengthening. So, the expectations were very far from being optimistic. But then happens something that cannot be called natural. Dollar began dropping whereas oil prices – growing. Growing were all but American indexes though the latter remained unchanged due to the day-off. Russian indexes after huge decline caused by panic in the morning then somehow recovered and even rose to the end of the week. In addition to that the exchange bulletin published the information (surely supplied by insiders) about coming rally expected after 5 p.m., and exactly at the appointed time it did happen.

The trade-floor analysts literally had brain freeze. Nobody expected such developments. Nobody tried to explain, with usual formulae of grown risk appetite, what had happened. Dressed with Dubai default the dish looked like pig’s breakfast. But really how can one explain what’s happened? In the beginning the players get into a flat spin from nothing. Remember that real estate crisis in Dubai is no more news about accumulating problems. It has already been no news when the leaders of economic bloc in the emirate were totally replaced. But it was also evident that the federation, i.e. United Arabic Emirates, or, more exactly, Abu-Dhabi, has enough resources not to anticipate more catastrophic consequences.

And then, started from nothing, panic finished at nothing too. ‘Cause nothing has happened. It was only in days-off when it served office that UAE were going to support the Dubai creditors. And what should be analyzed here? That all trade-floor community are a herd of cattle who with no purpose and reason rush around?
The trading session left no grounds for doubts that the huge portions of dollars have been surfacing in the market from nowhere all day long and at last they got their critical mass and let turn the trading session around.

We do not actually know who give the market those escape dollar injections but we do know that in December, 3 of this year the US Senate must appoint Ben Bernanke to a second two-year term as a chairman of Federal Reserve System. And we understand that market meltdown before this important event would have put paid to his candidacy, more by token, his easy money policy is not that popular among the Senate. Let’s now pay our attention that on Friday he suggested that banks should return money lent by FRS as quickly as possible and we can see that his proposal evidently has connotation of pre-electioneering show.

If two these events (Bernanke’s statement and conciliation of stock markets) are really interconnected there are two conclusions. The first is neutral and Bernanke seems to hold his post again. The second one is utterly unfavourable. The stock jobbers clearly imagined that they had quite secure cover from any sequences of their adventures and their risk appetite, or, to be more accurate, greed appetite is not anyhow limited. And this means that both the extent of risk and the extent of greed can be endlessly raised.

Thus, now when the meltdown happens (for it is sure to happen), the losses rate and drastic consequences will severely impact on the world economy.

Thus, it inevitably comes to my mind that purchase of gold is the best solution at the present moment, and all above-mentioned ideas do convince me of it.