return the gold standard as world unravels, page-66

  1. 12,639 Posts.
    >Reintroducing the gold standard can only go one of two ways,keep currency amount constant and reduce the ounce price of gold to equal the currency on issue which will lead to a monumental reduction in the value of gold, or keep gold value constant and reduce the amount of currency on issue and create the single worst destruction of wealth ever seen.

    lol Enoonmai you yourself have got it all wrong.

    Increase in Gold Prices: It has been estimated that "only" 142,000 tons of gold have been mined in the history of the world. Based on prevailing prices, this translates into approximately $4 Trillion, not nearly enough to cover all paper currency in circulation. Thus, a return to the gold standard would necessitate a drastic increase in the price of gold. Does this mean that you should invest your savings in GLD? Probably not, since it?s unclear exactly how a conversion of paper currency to gold would take place.

    http://www.currencytrading.net/features/what-would-a-return-to-the-gold-standard-mean-for-you/

    Putting it simply:-

    If we go back to the Gold standard then US$10000 for Gold is probably closer than we previously thought.

    If we have a Gold backed currency then I come to the same conclusion of US$10000+ gold price because there simply isn't enough Gold to go around hence the only way to include it in a Gold backed currency would be to make it very expensive.
 
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