Yesterday confirmed what we always suspected, Jim Sinclair has always had a similar vision to that shared here on the Forum, and which we (at least I) referred to as Freegold Concept. It is however not the "FOFOA Freegold".
Our friends of goudstudieforum.com submitted a piece in the correct language (terminology) which similar to what Jim has been talking about, but now with subtile differences, and a reasoning behind it (which has been most part absent for the American readers: why the ECB mark-to-market is in theory better then the FED's fixed value of gold).
Posted December 28, 2012, at 7:48 pm EST The Bright Future of Gold: The Final Solution of the 2008 Monetary Crisis
Jim Sinclair’s Commentary
This is a brief of discussions within a private self financed research group in Holland.
It demands respect and my gratitude for their contribution of this ever more complicated subject, Gold.
They can be reached at goudstudieforum.com
The Asian wealth producers (physical economy) and the major oil and gas owners, sympathize with the euro goldkoncept, that concept being, the market revaluation of gold without any link to any currency. (Remember the Duisenberg Speech.)
Gold, the wealth reserve (so not as a currency), shall be freely valued at the world’s gold auctions. The demise of the old dollar standard and rise of the Gold value standard and reserve.
Real value should be priced in and exchanged for a currency that also values, recognizes and promotes gold as a value standard. That currency is not the dollar, but the € (€ system and regime).
This (brilliant) idea/concept is not new. The early pioneers were Jacques Rueff and Triffin. Read: The Monetary Sin of the West.
Both wanted, but disagreed, to a free-floating gold price (value) during the London Gold Pool period (sixties). Their (Reuff and Triffin’s) point was:
Financial, monetary, and economic global stability by introducing the Gold Value Standard. The Dollar-regime (system) refused and forced the acceptance of the absurd SDR (paper gold).
But the two-tier gold market was born:
Monetary ($)gold and non-monetary gold. Oil and Asians keep accumulating physical gold and the € currency (€-system) that favors Free Floating Gold Value. Stability means that value should be exchanged for value. Currencies that recognize the value of gold as a wealth reserve are worth to buy valuable oil and products. The owners and producers of wealth get the assurance that their wealth can be safely stored as a reserve in free floating gold value, the only appropriate store of wealth.
That’s the running transition out of the non-wealth $-system.