I find funny these doomsday commentators who always rattle on about FIAT currencies and their imminent collapse and how they state a currency based on gold is the only way.
For one, gold's value is mostly in the minds of people. If people choose to use something else as a value store, gold has every chance of collapsing in value too. Historically it is used as a store of value because it is rare, strong but not too strong and does not decay. Electronic money doesn't decay and can be as rare as we choose.
Why would we want our monetary policy dictated by the suppply of gold? Before the Californian gold rush there was a shortage of gold to facilitate the booming world economy and hence there was deflation (not where we want to be). Afterwards, because of the rapid increase in the supply of gold there was rampant inflation.
These people that foresee the comeback of the gold standard have either a vested interest in the POG increasing or lack fundamental training in economics.
Sorry for those that find this boring, but as an economist I find this history lesson to be of interest and it does have some impact on the future of GOA.
GOA Price at posting:
2.0¢ Sentiment: Buy Disclosure: Held
