Look Who's Buying the 'Barbarous Relic' Now

This is not "news." Every time a nation severs all connection with a gold standard and produces "fiat currencies" (paper that only has value by government decree), the paper money goes to zero, or is simply abolished before that path to destruction has been completed.

This goes back literally a thousand years to ancient China -- the dubious "inventors" of (purely) paper money. Ask the gold- and silver-buying Chinese of the 21st century which form of money is the "barbarous relic," and they would gesture toward the paper they are shedding with zeal in favor of glittering gold and shining silver.

The Chinese are not alone. Back when pompous Western bankers were maliciously spreading their propaganda that gold was a barbarous relic, they were backing up those evil words with equally evil deeds: dumping about 500 tons of their own gold onto the market to crush the price of gold -- and lend credence to their lies.

But, as the saying goes, what goes around comes around. The gold of the Western bankers is gone, and along with that their capacity to destroy the gold market. But the lie lives on. As recently as 2009, Keynesian disciple (and Noble Prize winner) Nouriel Roubini declared that gold was still "a barbarous relic" and, thus, the gold market was a "bubble" that was about to pop.

When Roubini made those bold predictions at the end of 2009, the Money Printers (i.e., the central banks) were just about to flip-flop from net sellers of gold to net buyers (for the first time in two decades), and the price of gold was under $1,200/oz. In 2010, the central banks bought a net 87 tons of gold. And their gold-buying rapidly accelerated in 2011, with central banks adding a whopping 440 tons.

This news came out at the same time it was announced that Mexico, Turkey and Russia added about 45 tons more gold to their holdings in March of this year alone. Central bank gold-buying continues to accelerate. So much for Roubini's assessment of gold as a "barbarous relic."

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