Gold has a high value because people want it for things. It does not corrode. It's shiny. Basing currency on an actual physical thing instead of just printing more of it limits governments to passing out wealth that they actually have to trade. This standard for trade remains the same across the globe. Money cannot just be printed or value created from nothing, or predictions for what may happen in five years. You are forced to live in reality.
I personally believe the fiat money we use now is quite dangerous given the comparison to the gold standard. I believe this change was made so that the money supply could be inflated without needing to back it up with gold. I think this has caused a lot of inflation and a lot of our economic problems.
yes, i think that it would be a really good idea if we did go back to the so called gold standard, and that it would do a whole lot of good for the people that are here today. i think that it is a good thing for us to have.
I'd jump on the bandwagon if I could and say its right, however gold standard isn't what the economy needs right now, with the US being in this debt, we can't base our economy on pieces of metal that is. Now if we used all the gold in USA for example, how long would that last? How long into the future can we use it, if there's only a limited amount. If you think we could remelt in use it again, I say not as there are more people being born/moving in our country. One day I say we will eventually run out, what we turn to. Paper money? Barter? Our economy would be on the friz once again. Save the trouble stick to paper and silver and we'll use gold for more important things.
There is no way for our economy to ever move to having a gold standard. So much of the currency in the United States doesn't even really exist. In the gold standard, each piece of paper money has to be able to be backed up by real gold. We now live in a world where a lot of our money is merely a promise, and a promise that isn't able to be backed up with metal.
I think to much time has gone by since going off the gold standard that going back on it would bring about very wild economic swings, I think instead of going back to a gold standard the United States should have a more fiscally solvent budget plan that eventually pays down the debt and boosts the value of the currency.