WHERE WILL IT STOP?

Evening Post, Volume CXVI, Issue 71, 21 September 1933, Page 10

WHERE WILL IT STOP?

The price of jgold in terms of sterling yesterday reached the Alpine peak price of £6 13s per ounce fine.' Before England departed from the gold standard it was 'about £4, 4s lOd. Where and when is it going to stop rising? v ;Only as"recently as July 1 last-it was quoted at £6 2s 4^d. What does this rapid and sensational appreciation ' portend? I Surely private hoarding, the offspring of fear, cannot entirely account for the world .desire to have and to hold the precious metal, regardless of its cost in pounds, dollars, or any other, currency. One result, certainly, has been the impetus given to gold mining in all countries where "gold is likely to be mined, 'dredged, or otherwise won from the earth, and in this New Zealand is now playing its part. But valuable as any mining industry may be it is not reproductive in character. Every mine, riverbed or sands from which gold or other precious metal is won is a wasting asset and in that respect greatly differs from lands devoted to husbandry in its various branches. As it is two nations, France and the United States, hold between them 60 per cent, of the known stocks of gold of the world and neither is prepared to part with it; indeed, each is set upon increasing its holdings of the metal. Gold is obviously still the highest standard of value; it has always been and always will be tightly held, readily exchangeable for goods and services at any time and in any place. The United States, it will be remembered, required its war debts instalments due from Great Britain tq be paid,in gold and in gold they:have been paid. Until this fierce passion for gold is allayed it would seem hopeless to look for any stability in exchange or any encouragement given to international investment and consequentially the fuller development of struggling industries and latent resources. •' .