Four-Digit Gold Sets a New World Order


...most important to small investors and speculators in junior mining stocks, $1,000 gold means that lower grade deposits which have suffered an absence of exploration due to low grades from prior work are going to be the recipients of attention again. With gold at $1,000 per ounce and climbing, sub-1 gram per tonne gold deposits can still be viable, if they are close to infrastructure and not excessively deep to reach.

Well, nobody who’s been a believer in gold prior to 2002 is surprised that gold has finally poked through the $1,000 mark, with futures now fetching $1007 today. It's more than just a psychological barrier that has been breached. Gold measured in four digits is going to have wide-ranging effects on many aspects of the global economy...

Gold is not a commodity at all. Gold is the doctor called upon to diagnose imbalances and artificial valuations among asset classes. By that I mean, the only way to truly assess the value of any given paper currency is in terms of how much gold it can obtain. Gold is the standard by which currencies are measured, Bretton Woods notwithstanding.

Gold shines the unflinching glow of truth upon the fiat paper to which it is compared...

But the effect that $1,000 gold is going to have on the top of the financial food chain can already be discerned by the machinations of sovereign and large private wealth in the background. Through unique and innovative debt structures, these groups increasingly seek to obtain a stake in large quality resource assets. Gold topped $1,000 easily, in the long term sense, because it's being taken out of circulation faster than it can be taken out of the ground...

As the smoke clears from the collapse, expect a new world, in which miners and mining companies are recognized as one of the last remaining bastions of real value, and are priced accordingly.

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