For a few days now, I’ve been wondering about ths possibility of the States putting back together an international payments system with gold as a component. It seems there are some international rumblings and meetings that are set to happen now.

At the same time I’ve been wondering why gold has not been going to new highs as the stock markets tanked. Silver has been weak, and gold mining shares have been much weaker than gold. Silver is industrial too, so that explains that. But why the weak gold stocks? Won’t they benefit from lower costs in a depression?

Anyway, my guess is that if these nations get a new system in place, then gold will lose some attractiveness. If that new system uses gold, then it will restrain inflation. So gold will lose some appeal. This would explain the weakness in gold and gold stocks.