paper money doomed gold will rise, page-20

Money, has before now, always been a physical thing. Hence sea shells, gold silver, paper. For the first time, in man's history it doesn't have to be. It can simply be a digital record and for a lot of people, this is what it has become. ie I buy less and less with cash. So, the point is that we have a lot of options and gold is only one of them. There are no gold based currencies that I am aware of. No country has gone down this road. All that is needed is that it is based on a "store of wealth" and that is something that can be subdivided and the people have confidence in. So, the gold story has not worked with any government since Nixon. I also haven't seen the markets demand gold as a currency. Markets do their own thing and they are not bartering in gold. This is rejection. A hard and soft commodity index could work as a currency, it just needs some thought.

Max