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<p>[QUOTE=&quot;Gam3rBlake, post: 8240489, member: 115909&quot;]I’ve always been fascinated by the concept of bullionism. The idea that wealth is defined by the amount of precious metals owned.</p><p><br /></p><p>Do I believe it? No it’s just interesting to me.</p><p><br /></p><p>So what do you guys think would happen if the world returned to the gold standard?</p><p><br /></p><p>If tomorrow the US government said that $1 was to be defined as 1/2000oz of gold. In other words $100 = 1/20 oz.</p><p><br /></p><p>Right now the market price of gold is just below $2,000 an oz so the dollar right now can technically be redeemed in gold via any bullion seller at the price of $2,000/oz via the markets even if it’s not the government.</p><p><br /></p><p>But what if the government took on that role and defined the dollar as a certain amount of gold?</p><p><br /></p><p>One thing discovered during the gold standard is that if people believe they can redeem banknotes for gold at any time they often don’t actually redeem it and use the banknotes as a convenience solely due to the reassurance that it could be redeemed for gold.</p><p><br /></p><p>So basically the government probably wouldn’t have to be redeeming a bunch of physical gold as people would still use banknotes for convienence.</p><p><br /></p><p>Which means banknotes wouldn’t really have to be 100% backed in gold.</p><p><br /></p><p>Would it halt inflation?</p><p><br /></p><p>I know the gold standard has alot of problems and isn’t feasible in the long term due to the fluctuating price of gold based on outside supply and demand and the inability to influence monetary policy during times of economic distress..</p><p><br /></p><p>But what if?</p><p><br /></p><p>The idea of gold coins in circulation just blows my mind. When I was born even silver coins were long out of circulation.[/QUOTE]</p><p><br /></p>

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