Good to see 253 times this article was read, but would like some...

Good to see 253 times this article was read, but would like some feedback as what others make of it.

It looks to have a very very high expectation for gold price, it includes value drop in Euro currency as well, and yet we don’t hear much about that in the media.

European banks have a much higher exposure to the subprime issue than we think. Should there be any truth to this article, then there could be a lot of hard times ahead, and that can only be good for gold prices.

I was having this discussion with someone about currency security and backing. US stoped backing its currency with gold back in 60's and 70's (I think) now that could be the only way to get some credibility back into the US dollar.

This could only mean that gold has to be bought and stored. Now I don’t think you can have that much gold out there to do that, except if the price of gold is higher, and I mean much higher, lets say $5000 an ounce, then the amount of gold out there could be securing the currencies that are going south.

I don’t think the US reserve would have any problem printing more cash to buy up gold, and who's to say that they are not doing it already.

Again once can only dream that could happen, but if gold went from US$20 oz in 1969 to a peak of $US850 oz in the decade ending January 1980. That is a %4200 increase.

So if today's price of $950 x %1000 = $9500 an ounce. Ok I’m dreaming but only if we achieve 1/3rd of that, is it possible. I say it is. Should the RBA have the need to back its currency then we will see gold worth what gold should be worth.