Remember, since the U.S. went off the gold standard in 1971, the dollar has lost over 97% of its purchasing power. Yet today, an ounce of gold will buy the same amount of oil, and other goods and services, as it did in 1971. In fact, in Benjamin Franklin’s day, an ounce of gold would outfit a gentleman from head to foot. It still will today.

Kevin Drost
Asset Strategies 5.3.10

The total value of all the gold ever mined is only about $4.4 trillion, for example. The US is still the largest holder... but it has only 8,133 tonnes of the stuff... for a total value of $240 billion. So, if we did the math right, the Chinese could buy up all the entire US gold reserve and have about $1.2 trillion left to spend.

The Right Side

China has almost doubled its gold reserves in the past five years, it indicated. The country has raised gold reserves to 1,054 tonnes, from 600 tonnes it last disclosed, in 2003, according to Hu Xiaolian, head of the State Administration of Foreign Exchange, which manages China's £1,330 billion in foreign exchange reserves.

(Hou Hulmin, Vice General Secretary of the China Gold Association, said China should build its reserves to 5,000 tonnes.)

The Times

"Gold will remain volatile but trend upward. I don't pay attention to daily fluctuations, which can be caused by any number of trivial things. Gold is going to the moon in the next couple of years"

Doug Casey

Citigroup chartists wrote this week, “we see gold breaking further through key levels and the market appears on course to making new highs… we therefore remain unequivocally bullish on the short-, medium- and long-term outlook for gold… this useless metal that yields nothing can eventually test $2,000”.

In times of crisis, never forget the value of gold.

"Governments need to create a new world system, in which gold, as a stabiliser, should play its part. For individuals, gold remains the best insurance against future shocks and the best store of value".

William Rees-Mogg writing in The Times

To read the entire William Rees-Mogg article on why gold is so important to an investor, click here:

www.timesonline.co.uk/tol/comment/columnists/william_rees_mogg/article5740620.ece