LETTERS TO THE EDITOR — Blame Grits for gold’s woes

The recent precipitous drop in the price of gold is both damaging to some investors and alarming to the wider public.

For centuries, gold has been an important yardstick by which we measure the wealth of nations and individuals. Now, it seems, some smart modern economists and government bureaucrats are of the opinion that a “basket” of foreign currencies is preferable! What they are saying is that we should all put our faith in paper currencies, for that is the alternative — and yet that is also what is so dangerous.

I was disappointed to read about the decision by the Swiss and British to sell some of their gold reserves, but reminded myself that it was a Canadian government that led us down this thorny path. Now, because of its own substantial mining industry, it should be the Canadian government that leads us back to fiscal sanity by purchasing its own gold production for reserves. This, with one fell swoop, would both support our mining industry and give the Canadian people some belated confidence in their legislators.

Sadly, I cannot see this happening during the present Liberal administration.

David J. de S. Moore

Uxbridge, Ont.

Editor’s Note: We don’t either. The Finance Ministry of Canada announced that it sold 160,000 oz. (5 tonnes) of gold in March, reducing its level of gold reserves to 2.3 million oz. Canada has a long tradition of gradually disposing of its gold holdings; in 1998, a total of 600,000 oz. (18.7 tonnes) was sold.