By MoneyMorning.com.au
“During periods of occupation by a foreign power or the collapse of a monetary system, gold’s liquidity, acceptability and portability have been particularly important qualities and may well be more pertinent than gold’s rate of exchange with paper money. In periods of economic dislocation and high inflation gold has consistently proved a better wealth preserver than other assets.” – Stephen Harmston, World Gold Council, 1996
So, which is more likely? Occupation by a foreign power? The collapse of the monetary system? Or both?
Perhaps Australia’s set for a Natural Resources War?
Well, someone in Canberra must be scared of something. Why else would Australia need 2,500 American marines stationed in the Northern Territory by 2017?
Or maybe the American marines are the foreign occupation… stranger things have happened. The West has gone to war over resources before (oil in the Middle East).
So who’s to say the next battle won’t be over iron ore in the Pilbara… or natural gas in Queensland’s Cooper Basin?
Of course, a war over Australia’s natural resources seems impossible. It would be an extreme event. But that doesn’t mean it won’t happen. The federal government has already declared a domestic war on the mining industry.
At the Sydney Gold Symposium, keynote speaker Ben Davies spoke about “Financial Oppression”.
He said, financial oppression is “where we see the State impose socialism.” That it will come about through, “mining taxes, windfall taxes, [or] nationalisation of mines.”
Well, we’ve got the mining tax… and we nearly had the windfall tax. What about nationalisation of mines? Four years ago you would have called us bonkers if we suggested U.K. or U.S. banks would get nationalised.
But it happened… unexpected things happen. And when they do, most investors are caught out by it.
Cheers.
Kris.
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From the Archives…
The Onward March of the State
2011-11-11 – Kris Sayce
Lose a Shirt, But Gain a Wardrobe
2011-11-10 – Kris Sayce
Neither a Borrower Nor a Seller Be…
2011-11-09 – Kris Sayce
Roman or Zimbabwean
2011-11-08 – Kris Sayce
Lighting a Match to Inflation
2011-11-07 – Kris Sayce
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