At 12:14 PM 1/6/2003 -0500, George Matyjewicz wrote:
Hi:Interesting. I just had another thought. Let's say all the central banks suddenly decided to back their currencies with gold. Now, when they go into the market to buy gold, how do they pay for it? Damn, that one's got me stumped!
I'm researching a paper and came across some interesting stats. Can anybody verify and/or comment?
Why not return to the gold standard? One of the major issues with this premise is the fact that there simply isn't enough gold in existence to back all currencies with gold. At the end of 2001, it is estimated that all the gold ever mined amounts to about 145,000 metric tons . As of 31 December, 2001 the price of gold was $278.10 a troy ounce. Hence, the total value of gold ever mined and in use is $1,296,462,780,007 ($1.3 trillion). This means the value of gold has to increase to match the backing of currency.
Comments?
-- Patrick
http://fexl.com
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