Is there enough gold to switch back to a gold standard?

[silverbullionMember]

Many people believe that there is simply not enough gold in the world to switch back to a gold standard or honest money for that matter. This is simply not true as U.S. Presidential candidate, Ron Paul, explained during a luncheon on 5 April this year.As Paul explains in the video below, there is enough gold to switch back to honest money, but only if the market, in reference to the free market, decides what the price of gold should be. The same principle applies to other mediums the market may choose to use as money. Gold and silver can be used as money in the same monetary system, but then once again, the free market must be allowed to set the prices. If not, well, then you sit with a situation where the one will push the other out of the market as under bimetallism, a monetary standard where a fixed rate of exchange is set between gold and silver. In short, the moment you dictate to the market what should be used as money and fix the prices (and/or rate of exchange), you distort the market which will create shortages, especially when something as precious as gold and silver is used as money. The banking cartels know this and this is why like today, they did their outmost best to manipulate or fix prices in the past, in order to give the false perception that gold and/or silver is not money or cannot be used as money. This is despite the fact that gold and silver have previously successfully been used as money for 6000+ years. The banking cartels don’t want us to switch back to honest money, because if you have control over the creation and distribution of fiat money, money that gets created out of the proverbial thin air, you have much more power to change the world to your liking than under a monetary system where honest money such as gold and silver are used. It is after all much easier for bankers and politicians to instigate wars and allow government spending to run out of control under a fiat or debt-based monetary system, while giving people the false impression that they’re creating wealth, while they are doing the exact opposite. It is much easier for them than to use honest money, because honest money such as gold and/or silver cannot be created out of the proverbial thin air, it places restrains on unnatural, unhealthy and unchecked monetary expansion. Yes, natural shortages can develop when honest money such as gold and/or silver is used, but it gives the incentive to mine more gold and/or silver, to expand the money supply in a more healthy and gradual way. What is after all healthy and gradual about monetary expansion when an estimated 9+ tons of ink is used daily just to print fiat dollar notes alone, not even to mention the fiat dollars they create electronically with a few strokes on a keyboard? In addition, some false believe that the bankers currently have control over most of the honest money in the world, but this is simply not true. Why would they so blatantly and illegally manipulate gold and silver prices if that was the case? It is also no secret that despite the blissful ignorance or refusal of the majority of people to switch to honest money, there are many investors, individual and otherwise, who hold and own honest money, especially in the form of gold and silver coins. This is not even mentioning all the gold and silver bars that are in private, non-banking cartel hands. Now with this in mind, be sure to watch the video below…http://goldinvestment.co.za/buy-gold-Is-there-enough-gold-to-switch-back-to-a-gold-standard.html

[427Member]

Why Not!! What if gold was $100,000,000.00 an oz. Do you have plenty of gold now?Anything can be used as money, It’s just Gold & Silver dose it best

[SilverStandardMember]

Of course there is enough gold. In fact the amount of gold doesn’t even matter since one can measure values using gold as a standard without even having any gold at all.  For example in a truly free market if I am a farmer I could pay my employees using a gold standard.  I could print notes that say “I promise to pay 1 oz of gold worth of produce on demand after harvest” and use them to pay my employees.  After the harvest my employees can use these notes to buy produce from me at the farm store where prices are quoted in gold.  Thus me and my employees could operate on a gold standard without having any gold at all.  The idea that there is not enough gold to have a gold standard is just a canard designed to fool the weak-minded into supporting the fictional reserve banking fraud. 

• This reply was modified 1 year, 1 month ago by  SilverStandard. Reason: typo
• This reply was modified 1 year, 1 month ago by  SilverStandard.

[silverbullionMember]

SilverStandard You wrote: “Thus me and my employees could operate on a gold standard without having any gold at all.”It will only work up to a certain point if no real gold is involved. What you’re in fact advocating is nothing short of a Ponzi scheme, the very same sort of thing that has led to all the problems we’re experiencing in the world today. History has proven beyond a reaonable doubt that governments or private institutions always overprint and/or overcreate in such instance. In fact, even in instances where currency was fully and/or partially backed by gold and/silver, they’ve overprinting and/or overcreated. This is why many of us seek a monetary system where zero interest is charged on loans and where the money and/or currency only consist of gold and silver coins.

[SilverStandardMember]

What I am suggesting is possible in a free market (note the difference between advocation and the suggestion of a possibility) is certainly not a ponzi scheme, it is simply a form of private credit backed by the farm’s production; it is certainly not what has led to the problems of today.  The problem’s today are caused by the fictional reserve banking fraud backed up by the government guns enforcing a monopoly on note issue and legal tender laws forcing creditors to accept paper notes at face value (despite the fact that they are worth far less).Anyhow I am not saying that this is the ideal way to exchange value, far from it.  It would obviously be preferable for me to pay my employees directly in gold or silver coins since these would be far more likely to be acceptable to them and others with which they may wish to trade (surely if any of my competitors offered to pay them in gold and silver they would not agree to work for me on credit!).  However I was merely pointing out that in a free market if there actually were a lack of gold or silver for some reason or another that would hardly be a reason why a gold standard could not be used to measure values and facilitate exchange (or why there wouldn’t be enough coin or credit to facilitate business).  Such is the nature of coin, credit, and circulation.  There is always enough gold and silver coin no matter however little exists in any given land, private credit backed by real assets can fill any gaps to facilitate circulation and a gold (or better yet silver) standard can be used to measure the value of both coins and credit in circulation within the economy.    

• This reply was modified 1 year, 1 month ago by  SilverStandard.

[427Member]

Silverstandard That is what the Fed has done! CALLED FIAT backed by a promis.A promis backed by America on the production of the American workerNow do I need to change America to farm and American worker to employees?Money to have any value, what ever the choice. Has to be a limited resource. If not man will make more 

[SilverStandardMember]

427The fed is a different case because the government enforces a monopoly on note issue and legal tender laws that force creditors to accept their notes at face value.  I never said that the notes that a farmer could hypothetically print would be money, nor would they even be promises to pay money they would be promises to pay a particular amount of value worth of farm produce at a particular time, not unlike a future.  Gold and silver of course are the money chosen by the free market which is why one would use them as a standard by which to measure the value of credit like the farmer issued.  As John Adams Said:“All the perplexities, confusion and distress in America arise, not from defects in their Constitution or Confederation, not from want of honor or virtue, so much as from the downright ignorance of the nature of coin, credit and circulation.”

[silverbullionMember]

Spot on 427SilverStandard Ok, so what happens if you had a bad harvest, workers want to redeem the notes for produce, but you are not able to deliver? I am sorry, but the gold standard we’re in reference to is the gold standard where real gold is used as money and/or currency. It is not about a fiat ‘gold standard’ which is nothing but a promise that can be broken.

[OneTinSoldierMember]

silverbullion,“This is why many of us seek a monetary system where zero interest
is charged on loans and where the money and/or currency only consist of
gold and silver coins.”Speaking for myself, I’m not for a zero interest rate policy on loans. I’m for an interest rate based upon what the free market sets. And my understanding is in the free market the interest rate is determined by consumers time preference vs. how much money there is available to loan.If there’s a lot of money available to loan, interest rates will be low. If there’s not much money that has been saved by the public, then there’s not much money available to loan out, therefore you’d pay a lot(a high interest rate) to get a loan out on it. That’s my understanding of how it should work.

[OneTinSoldierMember]

Edit:My understanding is in the free market the interest rate is
determined by consumers time preference in regards to their demand for money vs. how much money there is
available to loan.

[AGXIIKMember]

If I may weigh in with a couple of thoughts on the return to gold and silver standards.  The irony of that is the fact that gold and sivler waged wars against each other for centuries.  Gold and silver was debased by central banks and governments through clipping and combining with base metals.  Silver and gold were in such oversupply 500 years ago that Spain went bankrupt (again) due to the raping of the Meso Americans during the Spanish conquest of the Americas.   The silver screwjob of 1873 was another war fought between the eastern and western sections of the US.  And then there is the rumor, accentuated by Turd Furguson of TF Metals that there are at least 3 1,000,000 ton stashes of gold. One in the US, one in China and one in Europe.  If any one of those comes to the surface, gold could drop in value due to its overabundance.  These are just a few errant thoughts from my errant mind this AM.  None of these things are likely to affect the coming FIAT collapse, debt repudiation and world wide depression that will befall us all.  Gold and silver will be the means to restart the monetary engine of the world.  IMO

[silverbullionMember]

AGXIIK I agree with you and would like to add the following:http://www.roadtoroota.com/public/181.cfmBimetallism, a monetary standard where a fixed rate of exchange is set between gold and silver, didn’t work, because they fixed the prices of both gold and silver, separately and in relation to each other. This caused distortions in the market, because the one pushed the other out of the market, creating unnatural and unhealthy shortages. This is not to say that gold and silver are not money or cannot be used as money successfully within the same monetary system, it is to say that the free market should set gold and silver prices (not even to mention other prices!). Yes, natural shortages can develop when honest money such as gold and/or silver is used, but it gives the incentive to mine more gold and/or silver, to expand the money supply in a more healthy and gradual way. What is after all healthy and gradual about monetary expansion when an estimated 9+ tons of ink is used daily just to print fiat dollar notes alone, not even to mention the fiat dollars they create electronically with a few strokes on a keyboard?

[427Member]

Hear is a thought, it dosen’t matter what money is used for it’s intended job.As long as man is part of it, it will fail.Fix the greed

[AGR999Member]

The annual worldwide production of gold is something like 50 million troy ounces per year. In the world there are currently somewhere between 120,000 and 140,000 tons of gold “above ground”. In order to visualize this, imagine a single solid gold cube with edges of about 62 feet. That’s about 10 feet shorter than a tennis court.  So, maybe that would be enough to switch back in gold.. if ever..

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