Confidence Slumps! Gold Booms
Socialist Press1980 1980-01-09Read it in the scan (PDF), scan page 4 →
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Prices have been soaring over recent . weeks, and, most spectacular of them all by a long chalk, the price of gold has hit new peaks in the international markets.
In the flurry of spocula-l tion which followed the and of the Christmas holiday period' the price rocketed to $630 per ounce before easing back signuy to a siu colossal ayU.
this for the average British or European worker? Taking place in the midst of the events in Afghanistan and Iran, it is an indication of a profound lack of confidence " of important sections of capitalists in the stability of the capitalist system; it damonstrates a continuing lack of confidence in the US dollar, and a lack of confidence that the forces of imperialism can hope to stem the tide of struggles that threaten its control in the Middle East, Asia, Africa and Latin America.
Money invested in gold acquires no interest payments: but gold, unlike paper money, stocks or bonds represents a concentrated and universally exchangeable store of value, of human labour power embodied in its production.
In a period of slump and. decline, when other investments-in plant, machinery, land and raw materials for production-can prove unsale. able or depreciate rapidly, and when productive industry faces intensified competition, rationalisation and increasing problems in realising profits, gold offers a store of value which will remain universally acceptable as long as capitalism itself continues.
The secrecy the gold markets makes it impossibl le to discern whether the run on gold has been led by Arab oil s tates seeking a means of proter cting their revenues, or by US British financiers opting ou it of investment in industry and s ieeking a hedge against mour sting inflation.
But it shows unmistake lably that significant sections wi ithin the capitalist class are Ic ›sing confidence in their own syst em. have also seen further evidence of intensified British repression of anti-imperialist forces.
The pre-Christmas police raids in Britain which led to 18 people being held under the Prevention of Terrorism She has been charged with no offence.
The raid, like so many others under the PTA was simply a device to intimidate opponents of British imperialist repression in
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