On 14 Jan 2002, at 10:12, James M. Ray wrote:

> Hi Claude, it's interesting that you say this (and pardon me for being
> a bit Euro-ignorant). Can you expand on why, and how much power of
> gold is behind the Euro? Thanks. JMR


For a start, the introduction of the Euro has been going well. It is a 
fait accompli. So the Euro is now ready to contend with the US for 
the title as a world reserve currency. I think both will share this title 
in the years ahead.

The Euro has already 15% of its reserve in gold. Although the Euro 
is not convertible to gold, it gives some sort of stability and solidity 
to the currency. Europeans nations have much more gold that 
could get into these reserves is needed. There are countries in 
Europe that are strong hard money advocates (like France).

The issue here is what arguments the ECB can use when it comes 
to the table with the USA to decide on the equilibrium of the USD 
and the Euro as world reserves currencies. Gold is one argument.

If you want to know more on this subject, I suggest you get the 
recent issue of the-Privateer.com. 



Claude Cormier
Ormetal Inc.

http://www.goldcurrencies.ca
http://www.ormetal.com
=============================================
Claude Cormier Public Key
http://www.ormetal.com/keys/ClaudeCormier.asc
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