Fiat money, or more correctly, fiat currency explained in an eloquent video:
Swiss Stock Exchange Launches Gold Currency
The Swiss Stock Exchange has not been deterred from new involvement with gold.
Together with Scoach Switzerland, the stock exchange for structured products, the management has the plan to introduce the listing and trading of products in so-called XAU gold units – which have an exact value of one troy ounce of gold – in October.
Gold will act just like a currency: paying the profits of investors from speculative transactions. The same applies if an investor had to pay the bill on losses from transactions in Swiss financial markets – in this case the difference could be offset in the form of gold.
Investors who want to make use of the new gold currency must open an account with Swiss financial services provider Six Securities Services. All transactions made through this account will subsequently be calculated in the XAU gold units that work in the same way as any other paper currencies such as the US dollar or the euro.
Miners Bullish On Silver
According to Reuters, prices for silver are expected to strongly increase within the year due to a worsening economic landscape.
Silver, the second-most popular precious metal, has historically traded in tandem with gold prices, and in the past 12 months its price has more than doubled to roughly $40 an ounce.
“What we’re seeing in prices of silver now is a completely natural response to the economic malaise,” John Smith, chief executive of Silver Standard Resources, said on Tuesday at the Denver Gold Forum, one of the largest gatherings in the world of mining investors, analysts and executives.
Silver is cheaper than gold, has scores of uses that gold does not — it is the best metallic conductor of electricity — and there’s about 15 times more of it in the earth’s crust than gold.
“I’m very bullish on silver, and I think we’ll see it at $50 (an ounce) within the next six months,” said Silver Wheaton Corp CEO Randy Smallwood said.
Record Open Interest In Comex Gold Options
A new record in open interest for Comex gold options was set on Tuesday, CME Group says.
The number of open positions at the end of the day reached 1,456,677 contracts, surpassing the previous record of 1,448,222 contracts from Monday. On that day, Comex gold options open interest eclipsed a record of 1,444,251 contracts that had just been set on Friday.
