Quote:
Originally Posted by checkthisout
There is no reason to back money with gold unless you think people that mine for gold or people who happen to find some on their property are more valuable to society than everyone else and should thus be richer.
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They are still selling land in California. I don't think that it happens very often that people "happen to find some gold on their property". Having the potential for gold is one thing. Investing the time, money and resources into extracting the gold at a profit is something else. Gold is difficult and expensive to find. The fact that it cannot be produced easily is what makes it a good medium to use as the basis of a currency.
In contrast is paper money which is worth nothing if we stop believing in it!
I see that gold prices have hit an all time high today. Here's a link to current gold prices, or what I call "the US Dollar Crash-O-Meter":
24-hour Spot Chart - Gold
Quote:
Originally Posted by checkthisout
Currency stability is provided through sound banking regulation and currency value is provided by what we do as a country.
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You are largely correct. And skyrocketing gold prices are a very good indicator that what we are currently doing as a country (and have been doing for much longer than the last year) is not working too well.
