"Before the Gold Forecaster came into being, it had become clear that gold was headed back into the monetary system. Why, you may well ask? It was because of the "Washington Agreement". This agreement changed the tone of central banker's approach to gold. This Agreement inspired the start of Gold Forecaster. Since then the newsletter has forecast the very events that are now taking place and has been right on each of gold's moves in price and in re-acceptance over this last decade.
What did the "Washington Agreement" do? Instead of harping on about it being a 'barbarous relic' and continuing to threaten to dump gold into the market and out of the monetary system, the European Central bankers involved in the agreement that bound them, reaffirmed that gold was an important Reserve Asset and restricted the sales of gold to a 400 tonne 'cap' on gold sales per annum. It was at that point that the gold price began to rise. While the establishment of the Euro was deemed to require these sales, central bankers were not keen to sell and some were even forced to do so by their government [France in particular]. This established that gold as an important part of the monetary system and that it was not going to be dumped into the market place then or in the future.
During the next nine years the world saw the restrained sales of gold by European central bankers, leaving the market believing that gold was not really going to be a credible part of the monetary scene in the future. But then came the 'credit crunch', the banking crises, the Sovereign debt crises and now quantitative easing, all of which has slowly sapped confidence in the system of government issued currencies. With the credibility and the value of currencies utterly reliant on the central banks and governments behind them any misbehavior in terms of a currencies value both home and abroad, would reflect itself eventually. With the U.S. dollar the heart of the currency system, when it began to be devalued through a continuing trade deficit over decades, doubts had already been established.
Riding in tandem with these currency debilitating events, was the emergence of Asia. With half the world's population living in Asia and less than half China's population making up the total population of the developed world, it is only a matter of time before the developed world is eclipsed economically by Asia..."
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