Monday, May 30, 2005

Gulf Cooperative Council Considers Accepting Gold for Oil

A lecture titled:

Oil for gold or oil for paper? Financial stability, gold, and the
ongoing rise in commodity prices.

was organised by the Gulf Cooperative Council and held in Saudi Arabia, it was attended by prominent members of the banking and finance industry.

The Gulf Cooperation Council heard that it should should peg its proposed currency to gold rather than the US dollar or Euro in a lecture presented by Dr. Ferdinand Lips an expert in currency and gold and author of the book Gold Wars.

"Being in the midst of a global currency devaluation scenario, it is worth noting that while oil is the king of commodities, gold is the king of money," Lips said.

Lips pointed out that "oil is underpriced and that oil producers are not getting real value by pegging it to the dollar."

Lips said "currencies, investments, and every crucial economic factor in the GCC countries are dependent on the US dollar, which shows increasing signs of structural weakness. The Gulf Countries could escape potential financial disaster by looking at certain other investment alternatives."

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