2011 GOLD high $1,500.00, SILVER high $24.00

Actually in lawful money, this would be dollars issued directly by the US Treasury and not the Federal Reserve, the dollar is currently defined to be equivalent to 0.238095 ounces of gold. If you invert this, it means an ounce of gold is equal to $42 in lawful money. This definition has existed since 1971 and is currently listed on the Federal Reserves balance sheet as the value of the US issued gold certificates that it holds in reserve.

Silver is no longer plays a role.

 

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I think it would also require the largest world economies to agree, as if one backs with gold or silver, they would soon be out of it. I think most are looking the wrong way. Most ( and I say most) of the younger citizens would rather that "currency" become mainly digital. Look at the large number who have checks deposited, and then use debit cards, credit cards, paypal, or Billpay. I think that most of the PM backing currency groups are thought of as currency luddites

Sure everyone would like the good old days when the payday was a coin and bill envelope like I received in 1961 or so, but I think those days are gone.

 

Gold backing of dollars would not prevent any of this taking place. What gold backing would do would be to put a limit on how many dollars could be printed or created. It doesn't literally mean that people would walk around with gold in their pockets, though they could if they wished to do so.

 

I appreciate your thought! I was a little sketchy with my direction. What I was heading towards, poorly I admit, is that the majority of voters care little about backing currency with PM, and each year, it will become even harder to acquire pressure to do so. If there was a visible connection to increased jobs, bettering of the average American's life, etc., gold backed currency might be considered feasible, but I can't see it.

 

In the waning days of silver certificate redemptions, they would only give silver granules in exchange for the certificates.

 

It's tough to get the younger folks to care because they've grown up in a world with relatively stable currencies. People who lived through the 70s probably have a slightly different view. Electronic money will lose a lot of appeal if there is a currency crisis -- and people will get an instant and painful lesson in money. I don't know if this will happen, but as an economic survivor of the 70s, I can't rule it out.

 

I am concerned about everything going digital. Maybe even going into a credit society where we purchase things based on credits like tokens at an arcade. A sudden EMP blast and without proper redundancy, one could lose everything....how can you prove you had 20,000 credits in your account? for example....

It's a lot like cloud computing in terms of IT. You put all your eggs in one basket, but if your platform fails, you are taking thousands of customers down with you.

 

If it is any consolation, most of humanity still does day to day transactions in asset based currency not tied to central banking. This would be silver and gold currency. This includes India, the largest democracy on the planet, and China, the most populous country. It's really only us Anglo Saxons, followers, and subjugated peoples, basically Western civilization, that has sold our souls to virtual currency and only since the 1970s. The USA's founding fathers warned against it, but here we are, never the less.

This is the reason that bullion investors exist.

 

It does help to hear that. I suppose I was being a bit selfish in my thought process. Only really thinking about the U.S./Europe when I was making that comment....

 

What country in the world today uses silver and gold currency? None that I can think of, except for, perhaps, South Africa, which at one time was allowing Krugerrands to be used for major purchases, but I don't know whatever became of that.

 

Somehow, since the US is no longer the world's major supplier of gold and silver, I feel that ship has long past sailed.

 

Currently in US markets for 1/13/11:

Gold: 1377.10
Silver: 28.80
Platinum: 1815
Palladium: 814

(Ask)

Silver taking a little break this afternoon...

 

Not only that, but how would they back the trillions of dollars in circulation with the relatively small amount of gold and silver in government reserves?

 

Currently in EU/UK markets for 1/11/14:

Gold: 1369.30
Silver: 28.49
Platinum: 1815
Palladium: 798

(Ask)

US markets opening in approx. thirty minutes...

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Currently in the US market for 1/11/14:

Gold: 1367.10
Silver: 28.72
Platinum: 1817
Palladium: 800

(Ask)

 

Currently:

Gold: 1365.10
Silver: 28.60
Platinum: 1821
Palladium: 801

(Ask)

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Just imagine paying for gas or something with gold or silver dust ? lol Now that would be a mess. "Can you make change for a Maple leaf or a Double Eagle? I need to get a gallon of milk". PM's just don't work for most purchases and I am not sure that a PM based currency would still work. Seems the people who mine and smelt PM's would take the place of OPEC in controlling the world's money ? IMHO

gary

 

Currently:

Gold: 1358.60 (-16.40)
Silver: 28.22 (-0.54)
Platinum: 1809 (+1.00)
Palladium: 795 (-15.00)

(Ask)

 

Ouch!

 

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