Silver - Knowns and Unknowns, but Still a Bullish Appraisal

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Naylor-Leyland said the "Death of fiat money will happen" and pointed out that a new series of Bretton Woods discussions getting under way at the end of this month will at least focus people's minds on the idea of a precious metals backing for world currencies and raise the profile of an opinion that "silver is money".

In his opening address to the successful London Silver Summit yesterday specialist precious metals and natural resources fund manager Ned Naylor-Leyland chose to quote Donald Rumsfeld as indicative of analysis of the precious metals sectors at the moment. The well-known poetic Rumsfeld utterance chosen was: "As we know, there are known knowns. There are things we know we know. We also know there are known unknowns. That is to say we know there are some things we do not know. But there are also unknown unknowns, the ones we don't know we don't know."

The reactions of the gold and silver prices in the current markets really bear this out, with disputed fundamentals, partly depending on one's viewpoint of precious metals as money or a store of wealth or not, suggesting big advances while in reality prices have fallen.

Naylor-Leyland said the "Death of fiat money will happen" and pointed out that a new series of Bretton Woods discussions getting under way at the end of this month will at least focus people's minds on the idea of a precious metals backing for world currencies, even though the general government and Central Bank opposition to such an idea will make serious consideration of this unlikely. This could, however, raise the profile of an opinion that "silver is money".

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