Gold Bullion will play key role as global economic crisis accelerates, author says

"The global crisis is accelerating," notes author David Knox Barker, publisher of The Long Wave Dynamics Letter. "Gold is stepping up to its inevitable role as the de facto world reserve currency."

Barker sees the potential for a short-term correction in gold prices. However, "regardless of how far the gold price corrects, the central banks and citizens of emerging countries will continue to accumulate gold for the long run," he says. "Gold will eventually continue its inexorable rise and rendezvous with destiny. The unfolding global financial crisis has taught the emerging world that the developed world does not have its act together in terms of financial and monetary stability. This means gold is destined to play a more important financial and monetary role in the future. [Economist John Maynard] Keynes was wrong: in the long run we are not just dead, we are back onto some form of modern high-tech gold standard. ...

"Keep and eye on the golden chalice. When it breaks and gold experiences its long overdue correction, global equity markets will likely be in free fall. The long wave winter is now locked and loaded for the next leg of the crisis into 2012. However, even as gold corrects, it will prove to be a valuable ticket to the other side of this long wave winter for investors and into a new long wave spring season. A new age is coming to international free market capitalism; I call it The Great Republic, and gold plays a lead role."

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