Should we return to the gold standard?

[Rambo35]

The opinions differ as some think we should have never moved away from the gold standard and that currencies are essentially worthless in today's world. There are advocates to return back to the gold standard, but that would likely wreck havoc on the financial system as deleveraging is likely to force heavy corrections.

On the other hand maybe that is what we need in order to move forward, a return back to normal. To what extend does gold have an impact on currency pairs now since there is no more gold standard?

Any thoughts on this topic?

 

[Pharaoh]

There are some drawbacks.

There are BIG questions regarding how much of claimed reserves is really in vaults. Worse, some of those gold bars may be filled with tungsten.

Even if we adjust for inflation, the "true" value of all goods and services in the world is much larger than when the gold standard ended. Either gold would become VERY valuable, or we'd need to dig up a lot more. Of course, I won't have any objections if gold shoots up to $25,000/ounce.

 

[marx15]

no it was not acceptable.

 

[ItsToday]

I don't think we will ever move back to the Gold standard. It would take a massive international effort even speculation of this would dramatically affect the price of gold. I am not even sure if it is something that would be good for the world

 

[Pharaoh]

Let me buy some more gold, then please speculate very loudly about this.

 

[ItsToday]

Let me buy some more gold, then please speculate very loudly about this.

You sound like one of the major banks!

 

[Pharaoh]

Quite a few major banks have far less physical gold than they claim. They'd be in deep trouble if all the people who bought gold certificates from them all walked in to collect their metal.

This is why I only invest in physical metals which I keep locked up inside my account at Mattress Bank.

Mattress Bank - Protecting your cash and other valuable assets since 1929.

 

[7Bulletin]

I am a supporter of the fact that you can earn on the value of any asset, if you understand and feel it, if you just act at random, then you should not wait for a special perspective no matter what asset you choose.

 

[Akimuro]

Any approach in the market has its advantages and disadvantages, I do not think it is worth to be categorical, but I think it is worth to be critical of any information and any statements on the market. A trader is someone who not only watches the information, but also analyzes it for further decisions.

 

[Spellkiller]

Everyone chooses what makes a profit.
You just remember the situation with bitcoin - at that time it seemed like a mistake, too.
And over time, it's brought in huge profits.
No one knows how to act 100% right.