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I've been really excited lately about the news that the CBI has been significantly adding to their gold reserves. But, as I think about it, I'm not sure it's a good thing. Here is my question: If the CBI knew a revalue was coming, why would they buy gold today? Why wouldn't they wait and buy it after the dinar revalued and was worth much more? With a revalued dinar, they could get a whole lot more gold for the same amount of "money". Think about that for a minute. If they knew a revalue was coming, why would they buy anything now? Why not wait until their buying power had revalued higher? And, it doesn't matter whether they bought the gold with US dollars, Euros, or the Dinar. Either way, they are essentially buying it with dinar. If they bought the gold with Euros, then they had to sell dinar to get the euros, so it is really all the same. They bought the gold with dinar that is currently worth very little. Why would they do that if they knew a RV was coming? That question is making me fell a little sick - I have lots of dinar and I'm going to keep it. But, that thought kind of takes my hope away. Here is an analogy: If you owned some shares of Apple's stock, and you KNEW Apple's stock was for sure going to go up by 10,000% really soon, would you sell the stock today and buy gold? No way. You'd wait until the stock went up 10,000% and then sell it for a ton more cash ... which you could used to buy a whole lot more gold. I believe the CBI knows if the dinar is going to revalue or not. If they know, why would they buy gold today? Why? It makes no sense to me unless they know it is not going to RV. I hope someone can logically tell me why I'm wrong. I'm not trying to be negative. I'm just trying to assess the facts and figure out what it all means. Thanks.
