I hear some mumblings about going to a gold standard again.
topstuf
Posts: 14,803 ✭✭✭✭✭
Seems to be some current talk about a ..possible... return to (or adoption of)
a gold standard for the US dollar.
My thinking is that this is a pipedream because HONEST money would have to bring an end
to so many derivatives and fake constructs of funds like ETFs and such and, with the
immense profits those create for their underwriters, brokers, and BANKS, I just think
that it would be so inundated with complaints that it would be immediately put to rest.
So what if they DID go to a gold standard by some stretch of logic or triumph of fundamentals?
I know how ....I... would go about it.
First, I'd establish a tax "amnesty" on sales of physical gold. Along with the amnesty,
I'd announce that private holding of gold bullion was again a forbidden activity and
especially since....now that your money is "BACKED" by the yellow stuff, why goodness me,
there would be no NEED to do that anymore.
Along with this of course, I would RESET the price of gold to be accommodating to a currency
connection. WAY up there. Oh, the goldbugs would REJOICE.
House in the Hamptons, big yachts, apartment buildings, the private home phone number of George Soros!
With my "assurance" of great benefits to you as not being required to store this now "valuable
as currency backing" stuff, I'd also ...mention.... that the penalties for resisting such a
boon would again carry a stiff fine and possible confiscation.
For the good of the nation's almighty and world renown DOLLAR!
Oh YAY! Honest money, we are saved, Mehitabel!
And....THEN
I would .....ADJUST.... (for "unforseen" errors in the original computation)... a...further
rise in the ...official... price that gold would be "worth" for INTERNATIONAL settlements.
Making the dollar irrevocably the currency of choice for the
petro countries, warlords, oligarchs with national treasuries under their thumbs, and
...gold...miners.
Oops, Mehitabel, I smell a money..er..MONKEY wrench.
Goldbugs would be a bit pissed. Oh well, they always are.
So that's how ...I .... would do it.
So....
How .....IF .... someone wanted to be prepared for this eventuality, would one deal with it
with some degree of speculative preparation? (assuming they WANT to ..HOLD... gold)
I doubt silver would be used for any currency connection because of its (either real or nonsense)
discrepancy in supply shortage. Plus it was never used the last time we had gold backing of
the dollar.
However, SILVER could again be the only "pure bullion" play available to individuals. (???)
If the "last time" is in any way applicable to a NEW "return" to gold backing, I would expect
gold "numismatic" coins (there's a reason for the quotes) would again be ...exempt from the
"turn-in" or ...confiscation under duress...or...???
Presently.... 11/26/2016..... actual gold COINS (issued for commerce) are selling at ludicrously
low prices relative to the spot price of gold bullion.
Right now, you can purchase Twenty Dollar Gold pieces (even in authenticating graded plastic) for
$1310-$1360 (depending on grade) with gold at $1183.00 "spot."
Each coin has .96 troy oz of actual gold so the "spot" (snicker) content of gold in "collectible"
(snicker again) form would be $1135.66 or a $174.34 ...premium... over the spot content.
Is it worth that for insurance?
You have to answer that.
I can tell you that back when gold was NOT legal for private ownership, the price of a $20 gold piece
was right around double what the price of gold was.
Would it do that again? Who the hell knows?
A ....LOT.... more people are aware of gold than were back then.
As far as ...silver.... dunno. I'd expect the primo bullion form would be the American Silver Eagles
with the pre-1965 US "junk" silver coins as an equal partner with them.
Anyhow, whatever happens (or doesn't) I just wanted to post this for consideration.
Good luck.
Comments
There are some great football games on TV that you are missing.
Knowledge is the enemy of fear
Believe me, I ...NEVER....consider a ...football game
anything "missed."
I see that. Lol; )
Knowledge is the enemy of fear
Damn!
And I try SO hard not to make it obvious like a stock tout or something
Despite the adage to 'never say never'... I think it is fair to say that 'never' will the U.S. see the gold standard again.
Cheers, RickO
As long as we have a golden rule we will have a gold standard.
Currency will not ever again be pegged to gold, it would require responsible fiscal policy and restrict the unlimited printing of money to finance irresponsible government spending. Gold will be continually attacked by governments to prevent it from competing with the currency via limits to ownership and/or heavy taxing of its ownership/sale. Keep an eye on the current monetary crisis in India for a peek into gold's ownership's future.
As currencies crumble look for their alternatives to come under attack.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
_Gold will be continually attacked by governments _
Yeah, they'll keep forcing us to buy their gold and silver eagles, just like they have for over 30 years now, and their platinum eagles for nearly 20 years, so that they can pull the old switcheroo on us someday and start outlawing and confiscating them back.
Liberty: Parent of Science & Industry
I believe the above statement would be true before they would go to the gold standard. It was a virtual standard anyway just like today as there wasn't 100% backing for every dollar. Any money barter system is more based on the good faith that you can reuse that money/barter form later for something.