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<p>[QUOTE=&quot;InfleXion, post: 1625769, member: 29012&quot;]I didn&#039;t say most valuable. I will quote what I said, but the jist of it is that it would be the most sought after. A gold standard doesn&#039;t change the value, only the desirability because there is no longer any concern about loss of buying power when the buying power is fixed. The value would be whatever it was when the gold peg was implemented.&nbsp; </p><p><br /></p><p>&nbsp;So yes your post is perfectly applicable if the yuan is strengthening, but a gold standard doesn&#039;t strengthen or weaken the currency. What it will do is cause other non-gold backed currencies to flood the markets because nobody will want to use them. If more people want to use the yuan then if anything it would drive up the price of gold which is backing the currency, and thus the price of all other assets, and so the yuan would remain unchanged in buying power but the other fiat currencies would grow weaker. </p><p><br /></p><p>I suppose that if all other currencies are weakening then relatively speaking that would be the same as the yuan strengthening. So maybe I am splitting hairs. The caveat is that as soon as one nation goes to a gold standard anybody else who doesn&#039;t want a weakening currency will probably peg to that currency unless they have some of their own gold around and want to play with the big boys. I wouldn&#039;t expect Japan to, and I wouldn&#039;t expect the US to except that we would need to so they don&#039;t swipe world reserve currency status from us. In addition to whether a nation wants to or not, a gold standard could very well be a necessity just to be a player at the table in the future when this currency war is over. </p><p><br /></p><p>Something else to consider is that China may be perfectly happy to allow our markets to drive the global price since they are in a buying mood. If and when they deploy a gold backed currency they may decide to take the reigns on price control after it is no longer in their interests for it to be at a bargain price.[/QUOTE]</p><p><br /></p>

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