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<p>[QUOTE=&quot;GDJMSP, post: 1119344, member: 112&quot;]No, it isn&#039;t the way it works. Nobody can set the price of gold because gold, like any commodity, is sold on a free market. The market &quot;sets&quot; the price of gold.</p><p><br /></p><p>If it was as easy as you are suggesting then the US would &quot;set&quot; the price of oil and then a lot of the world&#039;s economic problems would just evaporate. But the US govt., or any other govt., cannot &quot;set&quot; the price of oil. Gold, just like oil, is a commodity. Nothing more.</p><p><br /></p><p>&nbsp;</p><p><br /></p><p>But no one is willing to pay that ammount.&nbsp; </p><p><br /></p><p><br /></p><p><br /></p><p>Nice work if you could get it, but you can&#039;t. For one thing, why would any person or govt. pay more for gold than everybody else is willing to pay ? You&#039;d have to be a lunatic. People and governments alike buy everything at the cheapest place there is that they can get it. </p><p><br /></p><p>If coin dealer A is selling a coin you want for $300 and dealer B is selling the same coin for $3000 - which one you gonna buy that coin from ?</p><p><br /></p><p><br /></p><p>&nbsp;</p><p><br /></p><p>&nbsp;</p><p>Greshams Law is quite simple. It is - Bad money drives out good. Just that simple. What that means is this.</p><p><br /></p><p>You have gold and silver money circulating right along side fiat money. A $20 gold coin and a $20 fiat note will both buy exactly the same thing. So why would anybody use the gold ? They don&#039;t, they hoard the gold and spend the paper. So in a very short time there are no gold coins in circulation any longer. The bad money has driven out the good.</p><p><br /></p><p>It has been proven time and time again throughout history. Every ruler there has ever been throughout history has tried the same thing and it never fails. Bad money always drives out good money.</p><p><br /></p><p>Besides, there is no advantage to having money made of gold, silver or anything else. Money is nothing but an idea. So anything can be used as money. And as I have explained more times than I can count, just about everything has been used as money at one in time or another.</p><p><br /></p><p>Gold and silver only have a value because people &quot;agree&quot; that gold and silver have value. Diamonds have value, cars and trucks have value, oil has value, aluminum has value, coal has value, even dirt has value. Everything on the planet has value. And the only reason that any one thing has any more value than another is because people &quot;agree&quot; upon that value. But the only thing they are really agreeing on is the idea of those things having value.</p><p><br /></p><p>The paper money that we use, that the whole world uses, has value too. And it has value because people &quot;agree&quot; that it has value. And for those who say it has no value, answer me this. Why is it then that those selling you your precious gold want you to give them that worthless paper money in exchange for their gold ?</p><p><br /></p><p>The answer is obvious, it&#039;s because that paper money has value. They can&#039;t go out and &quot;spend&quot; gold to buy things. But they can go out and spend that worthless paper money all day long. And they can do so because people &quot;agree&quot; that paper money has value.</p><p><br /></p><p>Money just an idea - nothing more, and it never has been anything more.[/QUOTE]</p><p><br /></p>

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