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View Full Version : What would the Gold Standard do to money???



mark2112gum
19th November 2010, 20:18
I've have this old US dollar bill, its labeled as a 'Silver Certificate'. My question is that if money were to be backed by pressious metal, at what point or amount would it take for a bill to be a 'Gold Certificate'?

What is Truth?
19th November 2010, 20:27
I've have this old US dollar bill, its labeled as a 'Silver Certificate'. My question is that if money were to be backed by pressious metal, at what point or amount would it take for a bill to be a 'Gold Certificate'?

I think the offical price of gold by the treasury is $40 per ounce US. On the other hand a gold eagle has a face value of $100.00 per ounce.

silverfish
20th November 2010, 03:40
I think the only way to do it would be to add up all the dollars out there (including debt?) and divide them by the amount of gold in Fort Knox and whereever else US gold is kept (assuming it is).

Just M1 and M2 (for starters) is $10470000000000 divided by 237227083 (US ounces of gold) = $44135 an ounce

A $1 bill would be therefore be backed by 0.7mg of gold.

skijake
20th November 2010, 09:59
I think the offical price of gold by the treasury is $40 per ounce US. On the other hand a gold eagle has a face value of $100.00 per ounce.

http://www.astrologyzine.com/images/gold-coin-american-eagle.jpg
$42.22 is the "official" price per ounce of the non-existent Treasury Gold.
$50 is the Legal Tender value of an American Eagle 1 ounce gold coin.

Prospector
20th November 2010, 18:18
What, you think stuff is supposed to make sense or something? You're talking about a country that can't even maintain a zinc standard.

coctailer
20th November 2010, 23:33
Quote stolen from another site:

"If the annual world production of gold is 50 million ounces and the world population is 7 billion the simple math says a world gold standard would allow approx .0071 of an ounce per person per year. That's about $10.65 per person per year.

Sure paper money is based on faith and that is the only thing keeping it from being worthless but Gold wont work either, at this point it's just a good investment storage device but as a medium of exchange after currency fails? dream on!

Gold would only be worth something in a society that hasn't fallen to pieces so you have a paradox. "

coctailer
20th November 2010, 23:38
I asked a similar question here:
http://forums.silverseek.com/showthread.php?22236-Gold-backed-currency.-I-don-t-understand.