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Hypothetically speaking, if we were to return to the Gold Standard, what might that do to the price of Gold?

I know most of you think returning to the Gold Standard is impossible, especially after the recent election. But this is a hypothetical question. Please humor me.

TIA
 

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Dog
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Hypothetically speaking, if we were to return to the Gold Standard, what might that do to the price of Gold?

I know most of you think returning to the Gold Standard is impossible, especially after the recent election. But this is a hypothetical question. Please humor me.

TIA
Interesting question. Im speculating but it’s possible that it would go down like before. The price is set and you go to prison if you don’t sell at that price.
 

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reluctant sinner
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There is only so much gold and it has only so many uses. The US debt is what 50 trillion dollars, lets set the gold value high $10,000/toz. so we need 5 billon ounces to cover our debt. I doubt there is that much in the country.
 

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Bug-In Prepper
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As of the end of 2020, the US monetary supply was about $19 trillion, and the national gold reserve was 8133.46 tons. For those dollars to be backed by gold, gold would need to be worth about $73,000 per ounce.

If the national debt ($27 trillion) needed to be backed by gold as well as the monetary supply, that's about $46 trillion / 8133.46 tons = about $177,000 per ounce.

I'm not holding my breath.
 

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as JetGraphics points out... the Federal Reserve Note isn't "fiat", but rather backed to by the people via social security numbers/system.

I could be wrong, so hopefully he can correct me.

Point being, it's backed by something so no need to back it by gold.

But if it did:

1. gold price would skyrocket ; or
2. gold would be confiscated ala 1933 before doing a 1934.

I think #1 and TPTB would buy up gold in advance, so they'd really really benefit
 

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as JetGraphics points out... the Federal Reserve Note isn't "fiat", but rather backed to by the people via social security numbers/system.

I could be wrong, so hopefully he can correct me.
The SSN thing is nonsense. The most powerful military on the planet is not.

Regarding prices under a FRN/gold standard, one of the two would happen:

1) The price of gold would have to exponentially increase in value to where the US gold reserves = total outstanding Federal Reserve Notes.
2) The Federal Reserve Note would have to exponentially decay to where US gold reserves = total outstanding Federal Reserve Notes.

I think we know which route the enemies of our country would prefer.
 

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Ten percent of gold production goes into electronics each year currently and this amount is going up yearly. Seventy eight percent of gold production goes into jewelry. About 10% of the remaining production becomes gold bullion.

World production of gold is just over 3,000 metric tons per year, or 105,840,000 ounces per year. At the current price of $1,855 per ounce that is a total world production of right at about $200 billion a year for total world production of gold.

Our national debt currently stands at $27.7 trillion and our GDP is at $21.5 trillion a year. We would need a minimum of $49.2 trillion in gold to cover the bulk of our monetary system. One could effectively call it $50 trillion as it would take very little growth to be at $50 trillion. Keep in mind this does not even consider "private" debt into the equation, if it did we would need "far" more gold.

So to cover our basic monetary system we would have to buy "all" of the worlds output of gold for roughly 250 years at the current price of gold to back our financial system. It is not realistic to believe that we could ever buy "all" of the worlds output of gold and it is impossible that any extra demand would not increase the value of gold per ounce. If we worked really hard at it we might be able to buy 2% or 3% of the worlds gold output to put towards our financial system and even that small amount would greatly increase the prices of gold, though at that rate it would literally take us in the thousands of years to stockpile enough gold to cover out monetary system.

It would not even be possible to back our monetary system in gold at this point and any attempt to do so would raise the price of gold up to well over $2,000 an ounce, though the issue there is that buying gold on the market to back our financial system would just dig us deeper and deeper into debt meaning more and more gold to cover our monetary responsibilities. If we were to try to back our financial system with gold we would have to do like we did in WWII and make private ownership of gold illegal and confiscate all private gold and gold producing mines. That would help somewhat towards our goal and reduce competition from private sources on the market. In the end it is a ridiculous idea to think that we would even attempt to return to a gold standard in my opinion... Even if we tried it would be a mathematical impossibility at this point.
 

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Gold is a micro cap. If it was used more there would be more demand for it and the price would skyrocked thus requiring less of it to be stored. Then it would be used as an asset to leverage back up so you would only need $1,000 of gold for $1,000,000 of leverage and we are right back where we started. Central banks are always going to push the envelope of greed and create the very thing they claim to want to prevent. The debt must expand less the debt implode and ruins them all.

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Live Secret, Live Happy
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As much as I hate to say it, the only way the US gets back on to the gold standard, is after the central bankers destroy the dollar, spend us into debt and refuse to pay back our creditors, then allow over half the country to starve.

Then after we convict the bankers of war crimes, perhaps those who survive and rebuild, can return to a currency based on a physical standard, that can not be printed or inflated by power freaks.
 

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Ten percent of gold production goes into electronics each year currently and this amount is going up yearly. Seventy eight percent of gold production goes into jewelry. About 10% of the remaining production becomes gold bullion.

World production of gold is just over 3,000 metric tons per year, or 105,840,000 ounces per year. At the current price of $1,855 per ounce that is a total world production of right at about $200 billion a year for total world production of gold.

Our national debt currently stands at $27.7 trillion and our GDP is at $21.5 trillion a year. We would need a minimum of $49.2 trillion in gold to cover the bulk of our monetary system. One could effectively call it $50 trillion as it would take very little growth to be at $50 trillion. Keep in mind this does not even consider "private" debt into the equation, if it did we would need "far" more gold.

So to cover our basic monetary system we would have to buy "all" of the worlds output of gold for roughly 250 years at the current price of gold to back our financial system. It is not realistic to believe that we could ever buy "all" of the worlds output of gold and it is impossible that any extra demand would not increase the value of gold per ounce. If we worked really hard at it we might be able to buy 2% or 3% of the worlds gold output to put towards our financial system and even that small amount would greatly increase the prices of gold, though at that rate it would literally take us in the thousands of years to stockpile enough gold to cover out monetary system.

It would not even be possible to back our monetary system in gold at this point and any attempt to do so would raise the price of gold up to well over $2,000 an ounce, though the issue there is that buying gold on the market to back our financial system would just dig us deeper and deeper into debt meaning more and more gold to cover our monetary responsibilities. If we were to try to back our financial system with gold we would have to do like we did in WWII and make private ownership of gold illegal and confiscate all private gold and gold producing mines. That would help somewhat towards our goal and reduce competition from private sources on the market. In the end it is a ridiculous idea to think that we would even attempt to return to a gold standard in my opinion... Even if we tried it would be a mathematical impossibility at this point.
I think the actual number would be 2 trillion, the currency in circulation. If the previous poster is correct on gold holdings ( it’s at least close), that would be about $8000/ oz.
 

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I think the actual number would be 2 trillion, the currency in circulation. If the previous poster is correct on gold holdings ( it’s at least close), that would be about $8000/ oz.
The problem with that is that capitalization is way too low if all currency is going to be 100% backed. The math doesn't even work anymore without a massive destruction of wealth and economic activity.

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Hmmm.....it would be necessary to have a fiat currency value crash first to enable central banks to pull digital _ out of circulation and cancel it. Then either back physical fiat only or re-issue it as something with a set rate of exchange. Billionaires would be millionaires, millionaires would not be, prices would plummet to adjust to new currency valuations. Loans would massively default as the contractual amounts would still be far higher than the adjusted fiat valuation. Powerful individuals and concerns would fully deploy every ounce of thier influence within ____ govt to obtain better exchange rates. Its a very old game, ancient actually.

Make the supply fit the resource. The definition of The Great Reset always discussed at Davos amongst the lear jet set. The caveat being that only the other 99.9% would be ruined financially and they themselves would successfully be able to avoid being strung up by an ankle and stoned to death or be sealed permanently in thier boltholes by the same.

Either is fine with me. I see this as the dawn of fiat 2.0, to finance expansion beyond planetary confines. Not blue skies, economics akin to expansion in the 1600s.
 

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There is only so much gold and it has only so many uses. The US debt is what 50 trillion dollars, lets set the gold value high $10,000/toz. so we need 5 billon ounces to cover our debt. I doubt there is that much in the country.
^^This^^ we simply do not have enough gold and Nixon knew this which is why he took the US off of the gold standard
 

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There are a lot of other metals and materials that the government could use for collateral for money why must it only gold?
It's essential that whatever is used is trusted, gold is trusted worldwide, it's good as gold. Why bother with anything else ?
 
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