Topic: Returning to gold standard? - page 3. (Read 3163 times)

Unless they made the value of gold coins very, very high, they would not circulate.  For example, were I running the monetary system of the USA, I might make a gold coin the size of the old (pre-1933) $10 gold piece (0.48 oz of actual gold, and some copper to harden the coin) worth, say, $1000 (vs. actual gold value of about $575 or so).

A silver coin the size of a US quarter I would have it worth some $15 perhaps.  Or make it a little smaller and stamp "$10" on it.

Even doing the above (fiat value WAY above metal value) might still not be enough to prevent hoarding of such coins ("Gresham's Law": bad money chases out the good).

So, IMO, best not to use gold as "money".  Silver might work better as a "Monetary Metal".

Maybe silver and gold coins can do better job than paper?
I also like this idea returning to gold coins..
All Precious metals can be involved.

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I am in FOFOA's "Freegold" school of thought re the yellow metal.  Do not tie gold to currency, just let gold go.

Even under a gold standard (which WOULD be better than the current one), there was currency debasement.  Debasement is a standard practice among governments, very few currencies last more than 150 - 200 years.  The most successful money/currency that I know of was the Byzantine's, they kept their gold coins in circulation for hundreds of years because they did not devalue them (until the end).

Recall that gold's best and highest use is as a Store of Value.  Currency is best used as a Medium of Exchange and an Account of Value (price).  "Triffin's Dilemma" (wiki it!), and especially "FOFOA's Dilemma" shows what happens when a currency is used for all three functions, ESPECIALLY as a reserve currency.

The current system does not work well.  A Gold Standard would be better, but not even close to a cure-all.

Same story is with bitcoin..block will half and it will more and more difficult to mine it.
Fiat backed to gold will have more value over time, and you can expect natural growth in every field.
People will spend more and will be happy.
 Inflation will be extremely small.

And the gold standard has worked out so well, too. 

How much gold do you think there is in the ground and out of the ground.  If the population continues to rise, can the world sustain a gold standard?  I think not.

This system makes (prints) money when they need it!
By this way you have constant growth of total supply.
And money losing its value over time.
In some point we will have worthless inflated paper .

Yes but numbers are infinitly divisible so there for there is a limitless supply of bitcoin!



Because the current system has worked out so well lol.

Gold standard would be an anachronism, like those quaint Amish people with horses and buggies


Nothing to do with frugality.

We all are aware that not every gold can be dugged out from the whole world so it is not fixed the limit of the gold we can have. But i am thinking about bitcoin standard rather than gold standard as 21 million bitcoin is the maximum that can be dugged out. 

- He who has the gold makes the rules

China's turn next?

Reminds me of this

Makes me wonder why Russia and China are litterally buying gold by tonnes every month all the while the West sells it for fiat.

Gold backed Yuan in the not too distant future maybe?

Space mining. Please! We can barely get a man on the moon

Expect them to try and impose a global fiat currency before gold makes a comeback. Hint SDR's

The idea of a gold backed currency is great and in reality is it is much better than fiat because there is 'some restraint' on quantity of money. But it has its problems when trust is lost, everyone wants their gold and finds out its gone, then the system breaks down.

Best idea would be to forget backing it and use actual gold coins, although thats a bit barberous

However I do expect gold to be a good safe haven investment. don't risk it all on crypto

How do you suppose you get that precious gold to earth? Carrying weight to earth is going to be extremely difficult and costly. It may be easier to get it out of space than in to space, but any carrier needs to be sent into space costs about 25,000 per kg. Imagine a space pod to carry gold that needs to be sent into space and what it would cost, in addition to the mining equipment that needs to go there and the personnel. I don't think the gold mined from there would be worth the effort at the moment. Let alone any manned mission to planets or moons are very rare.

The gold supply should be very stable until those kind of problems are solved.

Buying gold is a great opportunity to do this and have some similarities in bitcoins and greater than governments money.

Cannot be never so. Especially cannot be true the second sentence according to which the amount of money supply must be determined by the amount of gold is dig out. The amount of money in circulation in a country have nothing to do with the amount of gold dig out. Cannot be depend the economic life and first of all, the development of a country from the dig out of the gold. And if them who dig out gold make continue strikes (understanding that they work determine everything) in order to have increases of salaries? Without their work no dig out of gold, no increase of money in circulation, amount of products without being sell (no money), hundred thousand people without salaries (again no money) and in this way can continue with everything. And why this? Because must be back at the gold age which will disappear the actual economic disaster. But let leave for a moment all the above and forgetting the enormous debt existent in several developed countries where is the big disastrous crisis? I don't see unemployment increase in the main developed countries, I see increase or in the worst of cases stagnation of GDP in the majority of those. Very, very few are those countries who have not such parameters. Maybe the big crisis exist only in the posts of this forum.

In that time, space mining makes gold not so rare anymore.

Going back to gold standards would mean the end of the inflation and the worthless fiat paper. Also, money from a country could be accepted in another pretty easily.