Bloomberg – CHANYAPORN CHANJAROEN, NICHOLAS LARKIN & DEBARATI ROY – Sep 22, 2011
The metal rose 27 percent to $1,803.32 this year as the MSCI All-Country World Index of equities retreated 11 percent, led by financial stocks. Treasuries returned 8.5 percent, a Bank of America Corp. index shows. The U.S. Dollar Index, a gauge of the world’s reserve currency against six major trading partners, slumped 10 percent in the past 15 months.
Gold will exceed $2,000 this year, according to the average estimate of 16 respondents in a Bloomberg survey at the London Bullion Market Association’s conference in Montreal. The metal will peak at $2,268 next year, the survey showed.
…“Gold is simply a mirror of economic and political failure, of all the uncertainties that make people worry,” said Gerry Schubert, the head of precious metals at Emirates NBD in Dubai, who has traded the metal since 1979. “If you have $50 million, what would you do with that money? You buy gold. Hedge funds, central banks, sovereign funds: all are buying gold.” Go to story
KARANDHAR: Whenever there is an economic depression, then gold remains valuable. Just like when the stock market crashed in 1929, if you had gold you could still purchase goods. No matter how bad the economy was, people would accept gold as barter, but not currency.
PRABHUPADA: Yes. Indian economy was that if you have got extra money, you get gold ornament for your wife. So then your money is stocked there. Or purchase some utensils, silver utensils. That was Indian economy. This depositing in the bank and thinking that I am getting good interest, that is another cheating. It is another cheating. If things are not available, what will you get by getting interest? Therefore I am advising that purchase land and produce our own food. There will be no problem.
KARANDHAR: The inflation rate is higher than the interest rate. If you earn 5-3/4 % interest in a year, the inflation has gone up 6% in a year. So actually your money, at best it’s kept the same.
PRABHUPADA: The money is to be kept in cattle and grains. That is Indian economy, cattle and grains. If you have got many cows, you get milk. Milk preparation. And if you have got grain, then where is your problem? You prepare your foodstuff at home and eat and chant Hare Krishna. Where is your problem? You want to eat and live peacefully. So if you have got grains and milk, you have got enough food and there is no problem. You haven’t got to go fifty miles for your work, and then you require a tin car. So many problems. But if you get your food at home, then eat them and chant Hare Krishna and go back to home, back to Godhead. Simple thing.
In Kali-yuga people cannot undergo very severe austerities. That is impossible for them, because mandah sumanda-matayo manda-bhagya hy upadrutah [SB 1.1.10]. They are already very much suppressed and suffering because they are all unfortunate, manda-bhagya. Mostly people, they have no provision for eating either today or tomorrow. Manda-bhagya. There is no sufficient grains. Formerly even in the villages you would see that a common man has very good stock of foodgrains and cows, dhanvena dhanavan, gavaya dhanavan. Formerly the standard of richness was considered how many morai in the bank, what is called? Where grain is stocked? Silo. So in India it is called morai, grain stock. And how many cows one has got in stock. Then he is rich man. Nowadays how much paper money he has got. Actually it has no value. Suppose you have got some papers. Each paper it is written there “one thousand dollars.” But if there is no grain, what will this one-thousand-dollars paper will do? It actually so happened in the last war in Germany. Their money was thrown in the street. Nobody cared to take it, because it has no exchange. So long the paper money you can exchange, there is value. Otherwise it is paper only. But if you have got actual commodity—grains and cows—then you can eat in any circumstances. Never mind war is going on; you don’t care. You get sufficient food. What you will do with the paper money? So this paper currency is useless. If the things are going on nicely it has value, but in times of crisis it has no value.
excerpt from lecture on Bhagavad-gita 9.4, Melbourne, April 22, 1976:
The animals, they do not know that food can be purchased. They are searching after food. But we are civilized; we are searching after money. Money is required for purchasing food. Why don’t you produce food directly? That is intelligence. You are getting money, very good. What is that money? A paper. You are being cheated. It is written there, “hundred dollars.” But what is that hundred dollars? It is cheap of…, piece of paper only. But because we are so fool, we are accepting a piece of paper, hundred dollars, and the struggle for existence for a piece of paper. Why don’t you be intelligent—”Why shall I take the piece of paper? Give me food”? But that intelligence you have lost. Therefore my Guru Maharaja used to say the present human society is combination of cheaters and cheated, that’s all. No intelligent person.
Formerly money was gold and silver coins. It had some value. But what is the present currency? Simply piece of paper. Bunch of papers. During the last war the government failed in Germany, and these bunch of papers were thrown in the street. Nobody was caring. Nobody was caring.
So our civilization is based on that way. You require food. That’s fact. Therefore Krishna says, annad bhavanti bhutani [Bg. 3.14]. You produce your food. Anywhere you can produce your food. The land is enough land. In Australia you have got enough land. In Africa you have enough land, uncultivated. No. They’ll not produce food. They will produce coffee and tea and slaughter animals. This is their business. I understand that in your country animals are slaughtered and exported for trade. Why export? You produce your own food and be satisfied. Why you are after that piece of hundred dollars paper? Produce your own food and eat sumptuously, be healthy and chant Hare Krishna. This is civilization. This is civilization.