Thursday, March 03, 2005
Gulf Study Advises Gold Purchases
This morning a press release was sent out to all business editors announcing that
A study published by Gulf Research Center a foundation in Dubai has endorsed the Gold Anti-Trust Action Committee's findings that Western central and commercial banks have rigged the gold market but have much less gold than they claim to have and so are vulnerable to rising demand for gold. The study recommends that the oil-producing countries of the Middle East diversify their ever-depreciating U.S. dollar holdings into gold.The study titled The Role of Gold in the unified GCC Currency By Eckart Woertz is available from the Gulf Research Center for $10 USD. Here is their abstract:
GCC countries are dollar dependent. Their currencies are pegged to the dollar, their main source of income (oil) is factored in dollars and the majority of their investments abroad are held in dollars. While after World War II, the US dollar was still backed by gold and current account surpluses, it has turned into an empty paper promise since the 1970s. That spells potential disaster for GCC countries and calls for a stronger diversification of their currency reserves. The paper critically discusses a potential monetary role of gold by analyzing the failures of the historical Gold Standard and the topical attempt of Malaysia to introduce an Islamic Gold Dinar. Finally, it proposes that apart from “second worst” paper currencies like the Euro, GCC countries should take a closer look at gold, as it has an impeccable track record of asset protection over centuriesThe press release says "The study quotes the work of GATA's consultants, including Frank Veneroso, and predicts that the gold price suppression scheme of the Western banks will fail just as their similar scheme of the 1960s, the so-called London Gold Pool, failed when the drain on Western gold reserves became too great. Once the scheme fails, the study says,"
"it will be highly difficult and expensive to accumulate a gold reserve. This is especially true for central banks that have low gold reserves like those in the Gulf Cooperation Council countries."The study concludes:
"The paper dollar standard is a dead man walking. Its debt, accumulated over the recent decades, is too high to be effectively repaid.
"Gold will be a suitable means of asset protection and ultimate payment in such a scenario. It will preserve the wealth of individuals and central banks alike and will ensure important maneuverability for the latter."I suspect you will not read about the study or its recommendations in the MSM. They have not been permitted to write about GATA and they certainly won't admit that the price of Gold has been suppressed or capped since Rubin was Secretary of the Treasury. Bottom line: The members of the Center, made up of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates, have been advised to shift out of USD's and into Gold before it is too late.
Mover Mike
