Wednesday 24th August 2005 AD
"BUILDING THE GOLD ROAD"

We are gathered in the spectacular old 'Palace Theatre' in Dawson City, mostly bankers, economists, financiers, miners, geologists and market commentators amongst us, listening to our esteemed Swiss Banker reach several conclusions over the state of the world. 

Mr. Lip's fifth conclusion is less unsettling than previous, yet he is correct to point it out as, in the long-term, it will effect the geo-political balance of the world. 

"India will get wealthier and more successful." But he hastens to ask, "I wonder if a country is really successful if it has that many poor people? In spite of all the forecasts, India WILL buy more and more gold, Indians will never change. They have lots of history and experience with paper money."

"Now we are seeing the building of the 'Gold Road'. It starts in Dubai. Dubai is building the biggest gold refineries in the world. They buy and refine the gold that flows over the "Gold Road" to India and all of Asia." This "Gold Road" from Dubai is a most important observation by Lips, and one that we will dig up again in the not too distant future. 

The word 'Russia' now pricks the ears of the audience. "My sixth conclusion, . . .Russia could become the greatest power," carries on our speaker. "Russia may have the biggest gold reserves. In 1917 under the Tsar, the Bank of Russia had the biggest gold stock of all central banks, including the Bank of England." 

"Russia has many well-educated, hard-working, and decent people. They just need to abolish their enormous bureaucracy, forget their Marxist nightmare, and learn the principles of a free-market economy again. Russia is a fabulously rich country with enormous resources, a lot of good people, and a lot of culture."

How will Russia factor into tomorrow's Gold Road? 

I was asked today "why your preoccupation on Ferdinand Lips?" The answer is simple; geo-political, financial and national power shifts will happen more dramatically and rapidly than previously, while the information surrounding these changes will become increasingly blurry. The outlook and observations of thinkers and leaders of Mr. Lips' caliber will become increasingly more important for us to help us maintain accurate perspective in the future. 

As Individuals - our job is to equip ourselves with the knowledge that will help us survive and prosper in our changing world.

At Daily Dig - our job is to dig up the relevant information that will provide you, our valued readers, with this knowledge.

Best Regards - Philip Judge pjudge@anglofareast.com