I can't see any country going back to the gold standard. I can understand people's reasons for it happening but nowadays there are so many more aspects to a country's currency valuation than just gold - Its capacity to produce goods, materials and services that are in demand cannot be valued by a Gold standard.
But let's look at Australia's money supply and the reserves it has on hand:
80 tonnes = 80,000,000 grams of gold (going to keep it metric for now)
1.3 trillion dollars in supply. 1,300,000,000,000
At those figures, 1 gram of gold would be worth $16,250 roughly $520k per ounce.
If the powers that be said "nope, let's value 1 ounce of gold at $5200 per ounce" then the value of your money would decrease by 100 fold instantly.
crazy situation either way...
CCU Price at posting:
64.5¢ Sentiment: Hold Disclosure: Held
