NEW YORK (CNNMoney) -- With no end to the eurozone debt crisis in sight, there has also been no end to the stream of possible solutions. The latest involves using gold as collateral.
With eurozone central banks holding some 64% of the world's gold reserves, they'd have the heft to back that up. And there is some precedent, though that was largely during the pre-euro era. So it is unclear what legal hurdles might need to be overcome to satisfy all 17 euro-area nations.
But assuming those challenges could be addressed, experts see it as a real win-win possibility.
"Historically it's not unusual for a country to use gold as collateral," said Jeffrey Nichols, managing director of American Precious Metals Advisors in New York.
The idea of using gold as collateral was rumored to be part of a broader proposal unveiled by the European Commission Wednesday. Although that plan did not specifically discuss the notion of gold as collateral, experts said it's still a plausible scenario.
What would all this mean for the price of gold? Assuming the plan gets enough support, both Bhar and Nichols see it as a positive.
"It would give a sense that gold held by Euro debtor nations would be less likely to flood the market and give legitimacy to gold having some monetary value," said Nichols.
Just a few months ago, gold prices came within spitting distance of $2,000 an ounce. Currently, prices are hovering around $1,700 an ounce.
