fell by 10 dollars an ounce on the sneaky announcement by the British Treasury that it was going to sell over half its gold reserves.
While the timing was unexpected, this can be seen to be part of the uncrupulous reformist agenda of Third Way politicans in power in the USA and Britain to coordinate their moves to devalorise gold.
... without either the capitalists or decent honest revolutionaries even realising what is going on.
If this beautiful, soft, heavy and malleable metal is not the only true store of wealth for all humanity, what is? one has to ask.
Can it really be that so soon after the end of capitalism had been predicted by those who have no difficulty exposing Mensheviks with an unerring gaze, the economies of the major capitalist countries are sufficiently robust that the ultimate store of wealth is nothing other than the credibility of the central banks?
And if that credibility is the only glistening criterion of value, how are they to protect themselves from penetrating questioning? How can the population have economic certainty on any permanent basis?
Although some 30,000 tons of gold still lie in central banks, financial mavericks like Canada (look at the stupid Tobin tax law they have just passed) seem to be vindicated for the lead they took in the 70's. Now less than 4% of Canada's central reserves are in gold, compared to an average of 15%.
In more recent years countries like Belgium and the Netherlands have sold large quantities of central gold reserves. The Swiss have opened the door to do the same, and Clinton has undermined the authority of the IMF by suggesting it too might sell some of its gold reserves.
And there is the suggestion that the momentum could grow simply for reasons of self interest: the countries selling first are more likely to enjoy a higer price than the countries selling later. But even to make such a calculation is to destroy the mystique and the mystery of the only true store of value.
They claim they are in favour of capitalism but there is something distinctly tacky about these New Labour - Third Way bounders. Why can't that Brown fellow buy himself an attractive wife? Not worth a load of bent pennies if you ask me.
Chris Burford
London