What would the mechanics be? I assume there would be new gold (or silver) certificates. But what would happen to cash on hand, deposits, and the value of salaries, pensions, and prices?
I'm not advocating a gold or any other commodity standard. I just want to know, how it would be done? Would there be some conversion factor as of a specific date, and how would it be determined?
'Abdul Masiih
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There would certainly be problems, but I think it can be done. Personally, I found this article interesting, and fairly convincing.
http://mises.org/daily/5492
Enjoy. BTW, interesting question.
movngfwd
interesting question.
Gold is a representation of value.
Like the old mighty dollar, Gold would be nothing different from the paper back.
It is a representation of wealth or labor in the form of dollars or in your case gold.
Gold WAS used as a standard until not too long ago.
The rarity of the precious metal was useful..... to keep from counterfitting the value.
ie/ if you use DIRT , anyone could come up with dirt.... and could make more dirt.... or find lots of more dirt.... thus becoming RICH without much work.
Gold on the other hand is not something you just find. If found it could be made into coins (not very easily) yet is distinctly rare.
Countries like America, Russia, China , Switzerland, India.... have HUGE gold reserves (USA having the largest by far), thus if we ever went to a GOLD Standard , again, America would prevail as the richest nation.
Hmmm...... perhaps the reason why investor's are losing faith in the EURO and US dollar ? and starting to buy up bullion ?
my two cents
Mukesch Kaley
Something like bringing out a character in fiction, to walk on road.
Archistrategos - St. Michael
Must ask yourself - why gold? Why not dirt?
When you answer your question about Gold you must next ask yourself - did people 300years ago now how to take advantage of those properties of gold? So why was it so important then?
Next - this will blow your mind - do a little research on Ancient Alien theories and the significance of gold.
Next - ask yourself, do you have a better explanation than that?
Mukund
bringing the gold standard back in this era ,is simply not viable [doesn't work]
good luck