Topic: Central Bank: If The Entire System Collapses, Gold Will Be Needed To Start Over - page 2. (Read 822 times)

If fiat loses its value completely then their reserves will be the thing can save their nation but gold is not the only reserve,now countries has different kind of assets like oil and other natural resources which is also things made the fiat backed up by gold into their own calculation.Don't think its going to happen but it is going to happen then reason will be people moved the value from their fiat into cryptos and other assets completely.

the big connotations always come from the last two currencies you mentioned, those who play dirty, but they also often worry. the gold option will not help the overall recovery, and all countries do not want destructive chaos, in the end fiat will be reset and fully functional for local trust, in this case gold will run in a multilateral composition related to resetting the economic system.

I think it will be difficult if we have to use gold again in the transaction. because the amount of gold is currently limited and rare. also very ineffective if we have to carry gold everywhere to conduct transactions. if the fiat financial system collapsed I think people would prefer to use cryptocurrency rather than gold. like what happened in Venezuela some time ago. When Venezuela experienced an economic crisis and the currency fell they did not turn to gold. they are looking for another alternative payment tool namely bitcoin. I think bitcoin is better than gold. although bitcoin also has risks because of its volatility.

I still believe that without too much political interference, fiat currency should be able to do its job. But the central banks continue to print fiat whenever there is a need, and this reduces its value. You can check the stronger fiat currencies such as the Japanese Yen (JPY) and the Swiss Franc (CHF). They have thrived, because the governments don't interfere much. If you check the purchasing power of the Japanese Yen over the last 50 years, you can find that it has remained stable unlike the other fiat currencies such as the USD and EUR. 

Anything could happen in the world, it is all about the system that's been followed globally. Throughout the world due to several economic challenges more currencies seems to be under inflation. Everything can't be taken back to control through bitcoin or cryptocurrency. To some extent this can give positive results, beyond this if nothing can be done then the gold reserve each country holds will help as a saviour in overcoming the inflation.

Yes, I think it will start again with the old Bretton Woods monetary system, when gold was not always promoted and considered a common asset that could be exchanged in any country.
Therefore, gold is still a very important asset to the present and in the future for thousands of years.

Why do you think that gold is not much, if you check government gold reserve alone, you will see that they have lost of gold and there are still lost of gold that has also not been explored. I am not saying that gold would be the typical solution to it, because gold cannot do it alone, but I can tell you that to an extent, gold can really do lots of work in saving the economy off the dyeing country, while if they also apply bitcoin, bitcoin could also help to sort out such thing too because it has limited supply.

The real thing that can solve these entire inflation problems is when we begin to pay attention to some of these other things like gold and bitcoin that all have limited supply unlike cash.

Gold cant save the system, the economy or people is for sure true, its just a yellow rock so what do we really expect from it.    The point is the gold will not change no matter what, think about what our paper money is based on now and its political debt and promises of nations to each other.   That paper is going to alter substantially, it could even be that nation no longer exists.   Certainly the paper and its promises can be nothing more then yesterdays newspapers, just old writing of something once true.    In comparison to gold, that will not be changing even in extreme situations.    The value of gold is proven through the rise and fall of empires many times over, almost all the currency we use today has not lasted as well as its only token value not real base value.
  When the price of gold stated rises, it is not the gold which has changed in any way that day, week or year even but the paper is deteriorating and not able to last over time.

Gold essentially is useless by itself and I class it as just a luxury type element but there always going to be rich people or those who have more money today then they can use for even the whole year so they must store it, etc.   No situation will eliminate gold as a touchstone to value so long as trade exists especially between 2 nations.   Gold can be used and is unique in a few ways, but most days we can find something cheaper like copper so we dont need gold.   However I think gold is going to last and most importantly for speculation purposes I have zero doubt over my life gold will be used more in future then now.   I love technology but gold the silly rock that it is, will prove less silly then our current promissory note system so its undervalued right now.


US dollar system as the basis for world trade was founded after ww2 when USA was a net exporter.  Today alot of the world has changed, we recovered from ww2.    I dont disagree on food and security but unless we return to the age of empires then the military wont be enough to back a currency.
  Of course its about trade and everyone on this thread can recognise what makes us all rich in whatever country, it is about business done and comparative advantage and the exchange of skills, services and goods for the enrichment of both parties in trade.   War is not profitable and neither is military, its not an economic system and empires ended just as UK had the world currency and an empire covering a quarter of the world and it ended not in a profit but at best some ongoing legacy.
  Time does not repeat it rhymes, we'll see the end of Dollar dominance of currency I think and it should be that then the system better benefits everyone who is productive and competitive in industry and trade but also I guess theres some wars, failures to trades, failed currencies, defaults and economic collapse but not for the whole world imo.

You might think that gold cannot do anything good in our economy but as yourself why a lot of governments are holding tons of gold in their reserves? Because they know it is one of the last ones to decrease in value when these types of things happen, they don't even print more fiat currency or hold some of it since this will just dig them deeper into the ground. This kinds of doomsday scenario has a very low chance of happening since governments are already prepared for this types of events and I'm pretty sure that they have a lot of precautionary measures before they even go into that level. They also have learned their mistakes from the previous recession and I think we will have a more better chance of surviving the next one.

If the "entire system" collapses even gold can't save that. Think about it the worlds currencies all are getting horrible and people are really getting screwed because of it and we are here talking about how gold could save it. There is no way if the all currencies (even just dollar devaluating like crazy is enough) goes down then how could be we save the world?

Everyone will be screwed, there would be a lot of inflation and since the world all owes each other dollars like crazy some countries will not have any money remotely close to what they will owe and they will all go bankrupt because USA will try to recover that loss quickly to save face.

Hence, I am telling you there is not enough gold in the whole world that is enough to cover something like an entire system collapse.

Gold and bitcoin good investment assets but depend with investor which one to invest, if investor like faced with big risk and big result will invest with bitcoin and altcoin, but for investor take safety with their investment choose gold as investment assets, I like for take risk with investing on bitcoin or altcoin because have increase profit higher than invest with gold.

we cannot deny if gold is indeed a good asset in investing from the past and the system and the benefits of gold investment are profitable but as technology develops there are certainly breakthroughs or ideas that can invest more than gold and maybe for that investment with crypto or blockchain currencies. it is a breakthrough that uses the progress of time and technology and can be used by all levels of society, of course

Not that much exaggeration, actually conversion of world currencies to one universal crypto will induce negative effect to the economy of the country. No standard will determine the price and economy, if one country will have the currency of the world, they couldn't bare to handle the changes abiding these. In that regards, if the entire system collapses, crypto will not be the most accurate solution, it is still the fiat by each and every country.

I don't know what you mean by "primary currency" here, but you are thinking in the right direction

Countries that are more self-sufficient in major items (like food industry and other such industries) than the rest of the pack don't need gold to back up their currency because it is already backed up by the strength of their economy. You may ask a question as to why the US is hoarding so much gold then? The answer is quite simple though

They can and most certainly will use gold as a weapon of economic destruction against weak countries which in case of a severe crisis will have to rely on gold in their economic affairs (maybe even for propping up their currencies) as it happened with the Soviets in 1970's that had to import goods for gold

Paper money replaces not only gold, but also any product, any material values ​​that can be exchanged in the state. Therefore, paper money at their face value is stamped on the amount of increase in gross national income of the state for a certain period.
I do not quite understand the reason why the Bank of the Netherlands is concerned about the possible general collapse of the global economy. In my opinion, this is too much exaggeration. Problems in the world economy have always been, however, they are completely solved by conventional methods.

Gold is indeed an expensive asset and losing it to some other country can cause trouble to the giver. However, I don't think that we will be going back to those days when gold was the medium of exchange. For me, it is just a jewel now and there are only few countries who really have good amounts of it. The future lies in digital gold, bitcoin. So it would be best to focus on it for improving economy.

There comes a time where there would be no need for money and no value for silver and gold from anyone. The system of barter trading just as it was recorded in the history books would resurface. Life is full of times and seasons, nothing would certainly last forever as new trends would always dominate.

There was a Japanese Emperor who lamented during a drought that it was no use having pearls and gold as you couldn't buy anything with them in a genuine catastrophe.

The US dollar is the primary currency because the US is self-sufficient in food and has a powerful military. That's all you really need.

Their lack of imagination is also terrifying.
In 500 years people will wonder why in the ancient history people relied, for store of value, on something with no clear and measurable scarcity.

Gold can still be a backup, but only for the near future. But on the other hand maybe banks will not even live for too long, or at least not like this.

The most interesting part is that central banks seem to have totally forgotten what the value of paper money was once based on: gold!

So first there was gold, then they made paper, now it's not even paper anymore but just numbers on a computer, and instead of going back to using gold to back this up, they want to keep inflating the fiat bubble until it pops first! Then and only then they go back to the basics, and if that happens you can just wait for another fiat bubble to be created.

It's kinda terrifying to know DNB holds only 350 euro worth of gold per citizen. Meanwhile, the government debt alone is 68 times higher! No wonder they love fiat money so much.