Tuesday 16th August 2005 AD
"FROM THE CITY OF THE MIDNIGHT SUN"

On the banks of Yukon River, nestled in a small valley amidst willow and alder trees, lies the now sleepy Dawson City. In 1895 it was nothing more than a summer fishing camp in the Yukon Territory of northern Canada, but in 1896, after gold was discovered in its surrounding creeks, so many people flooded to the area that, by 1898, Dawson had become the largest Canadian city west of Winnipeg. 

So far north is Dawson City, that new settlers pouring into the area found themselves able to bask in the midnight sun of high summer. It was a city complete with running water, steam heating, telephone, churches, hotels, theatres and dance halls. Despite its cruel and unforgiving winters, over the next few years, the "Klondike Gold Rush" would become the largest gold rush in North American history. 

But as gold seemingly disappeared from the world financial stage, so did the gold miners and people of Dawson City. 

So what brought the Daily Dig along with 100 bankers, economists, financiers, miners, geologists and market commentators all the way back to Dawson in August 2005 ? 

"Because the world has forgotten the monetary role of gold !!" remarks our esteemed Swiss banker, "our world is in serious trouble." The keynote address at the international GOLD RUSH 21, "that is the one major reason for the worrisome state of the world. The abandonment of gold as money, of the discipline of gold, is the major reason if not the only reason why our world has become a very dangerous place. In my opinion, it is the biggest tragedy in world history" continued Mr. Lips. 

Without a doubt our modern world has become a complex and confusing place; stagnation, inflation, deflation, unemployment, terrorism, currency fluctuations, consumer debt, property bubbles - and all this topped of with $70 and rising oil. "We are facing an economic situation that could easily end in a debacle of epic proportions", continued Mr. Lips.

But has gold really disappeared from the world financial stage? And what of the "debacle of epic proportions" that our esteemed Swiss banker refers to? What of our long held view that the role of gold and silver is more important in today's financial world than at any other time? - All good questions that we will continue to dig for answers in the next few days from Dawson City. 

Best Regards - Philip Judge pjudge@anglofareast.com