Discussion goes back and forth over whether or not US currency should revert to the gold standard. I've not read much about the topic, but the question that my ever-thinking brain raises is: what would be the point? :argue: In reality, gold can't do anything but look pretty (and not in everyone's opinion, either), so its value is not any less arbitrary than the greenish pieces of paper themselves that we call "money". Who decided that gold was worth anything to begin with? It's not like you can burn it as fuel or eat it during a famine.
Yes I see what you’re saying but..........It is very rare, it does not degrade over time and it along with silver has been used as money forever. Precious metals act as an anti-inflation agent. I'm not sure how old you are but as young as I am I can see inflation at work. From wiki…” Gold was a common form of money due to its rarity, durability, divisibility, fungibility, and ease of identification,[2] often in conjunction with silver. Silver was typically the main circulating medium, with gold as the metal of monetary reserve.”
To say that gold is valuable because it has always been valuable begs the question. Also, if arbitrary paper money can be inflated, then why can't arbitrary metallic money become inflated in kind?
What I was pointing out is that it as a perceived value that paper will not ever have. But it also has a economic and manufacturing value as well.
Metals as a standard are probably still a decent investment considering a lot of these metals are in nearly everything non-perishable we consume. Copper is in every piece of electronic hardware you own, including the computer you're using, same with aluminum. Silver has great properties as a conductor over copper, and gold is also ideal since it doesn't corrode as quickly. Silver and gold are also used in many high-end solders. If you have any electronics with temperature stability issues, the engineers probably used a gold silver eutectic solder to bond the die, or possibly even indium. These may not be valid reasons why these metals should be used to back currency, but it does establish their worth in a society where computers and electronic hardware engulf so much of our daily lives...
There isn't enough [known] gold in the world to back the United States deficit, so it would be impossible for our country to return to the gold standard.
I always though an Investment Standard would be better basing part of our currencies value on bonds and stocks held in foreign companies, government bonds and other investments - over the many decades. We might own other nations now instead of them owning us at least have leverage. Part of this could be gold and silver naturally.
Let the feds do what they want. Those who are into silver and gold for money ought to start using it. Carry some generic silver rounds with you and offer them to shopkeepers. If you're a shopkeeper, set a daily exchange rate and offer to take silver and gold. It wouldn't be that hard. One of these days I plan to set up an online directory of people interested in participating -- a directory that has nothing to do with NORFEDs or e-gold or any of those outfits, just something for people who want to use the shiny metal itself. -=Steve=-
Hey MC - Why gold? Why silver? 1. It's scarce and only accessible by people with means enough to acquire it. 2. It's portable and not easily disbursable or concealable as trade goods tend to be. (metal standards replaced barter of large numbers of horses and livestock for example that had neither trait) 3. Last it's shiny and people innately wanted to hoard it, so it had value and eventually as a matter of prestige, it would end up in the hands of people who make leadership decisions in large quantities. Ultimately I think your answer is: It's the standard because at some point leaders who needed to be opulent in order to convince the masses they were fit to lead, needed to look the part. So if you ask those same people what to trade with and moving large numbers of livestock isn't as palatable as giving someone a cart of gold.. there's your trade standard. Otherwise for more historical references check here: Gold standard - Wikipedia, the free encyclopedia
I want to add silver has more than a monetary value as well. It has a medical one. It works as a anti-biotic, can purify water and placing a sliver coin in food stuffs can keep them from spoiling. Every heard the saying born with a silver spoon in your mouth? During the plague rich parents gave silver spoons for their children to suck on.
I know what you're saying but I have to say that if I try to pay for my groceries with a couple of silver dollars I'm just going to get bounced out of the store. The high school girl at the register doesn't want to hear about it and neither does the assistant manager. This is an idea that works well on paper but poorly in reality.
Hence the directory I mentioned. And I realize this wouldn't work at a suburban Walmart. But it might work in rural areas where people actually know one another and stores are often still operated by the familes who own them. -=Steve=-
