I think for something to be gold back and silver backed the mechanism and valuation and accountability needs to be correct and not enough thought has been assigned to a valid gold/silver backed currency due to self interest and power.
Even gold money has issues regarding accountability to me. I know the people behind it mean well but I do not think they understand the will of the people fully to get their complete trust through a market.
I think the mechanism for a gold or silver backed currency has not been treated with enough respect to ensure market validity.
I will give you an example. I am going to throw up a prosper for a mechanism solution. I am happy for it to be shot down or not but the debate, refinement, checks and balances, agreed rules are key!!!
For me trust is the key so how does the mechanism forge trust from gold and silver backing???
To me independence must be observed, free from all conflict and manipulation.
In this regard their needs to be consistent independent rules for audit including rotating different international auditors using the most sound gold/silver auditors that are as infallible as possible.
I think trust must come from a complex system to mitigate risks of manipulation and counterbalance the threats to trust. In this regard competing theories must gel.
In this regard, I think the mechanism must have a centralisation aspect, a decentralisation aspect, a timing aspect, a integrity aspect and a anonymous/privacy aspect as well as the public transparency aspect.
In terms of a possible mechanism that could be implemented this is what I would do. Some of the gold of each backed currency would have to be in a international location/repository, not China, not USA, not UK, not one of the big power countries where it is transparently observed and checked in real time all the time and secure. I say some because all the worlds gold/silver could not be here for this to be feasible. Nevertheless, the currency would be based on the gold/silver allocations in the repositories. China, USA, any other countries can have their own separate gold/silver holdings but the currency could only be backed by the reserves directed identified in this central international repository that is fully observed constantly even audited with guards and visualised in live streaming. The guards can be masked so they cannot be compromised. An independent person in each country can win a lottery to go to the vault with an expert and view the gold/silver in person once a year to ensure this is real and not an internet performance.
Then as I said countries and people have their own gold silver holdings which would need to be verified over a time period. International experts would be stationed at sites across each country all the time and at a time the holder determines at a spot the holder determines the experts must be ready to audit the gold or a portion of gold within a time period to audit the holding. Instead of ride share experts would do other things but one of their tasks would be to validate gold and silver to the point the validation of gold/silver would be considered a profession
What might be relevant is how long does it take to validate a gold/silver holding is real??
So China might have billions/trillions of gold but only a portion of that would be in the central repository. The currencies would be based on that relative to the other holdings of other countries. Each country could manage currency valuations by adding to or decreasing holdings at the central depository as they saw fit. In this way gold/silver holdings outside the repository would be irrelevant except to the extent they could be sold and bought between other parties at an agreed market price which would have nothing to do with existing currencies and require physical transfer. So for example a private buyer could put up a price and a seller can put up their price. At the time of sale and settlement a international expert would need to validate the gold/silver holding at some stage during the physical transfer with registered record.
Obviously there are flaws with this set-up but I am curious what others propose.
The currency amounts linked to gold and silver would need to be registered and recored with the international experts to with heavy encryption and tracking of the agreed currency form to.
