china launching gold backed worldwide currency, page-24

The funny thing is that whenever this has been tried before the gold backed currency has ended up collapsing and taking economies with it.

I guess what one has to ask is the age old question of WHY gold might be utilised for any kind of investment purpose, let alone backing a world currency standard.

Imo it all comes back to the fact that gold is one of the rarest metals and people intrinsically love to own such a thing.Much like a rare art piece,a car produced in very low numbers,etc etc.The interesting thing about gold is, that like silver, it is already consdered a type of asset backing and inflation hedge for a countries worth which adds to its demand.

No...I dont think we'll see a gold standard in this global economy we have today.BUT what I think we will see is gold taking a much more prominent position as a type of currency backing AS IS HAPPENING NOW with central banks,investors and countries all starting to realise this fact and seeing its relative rarity as that inflational hedge.

d.