Dreaming of returning to the Gold Standard.. What are you smoking..
Many people look for a panacea to fix modern economic woes. One of these dreams is to return to the gold standard. Doing a little arithmetic reveals some interesting results. First how much “money” is there in the world? In US deposits (M3), its around 10 trillion dollars, 10,000,000,000,000 The world total is about 70 trillion dollars How much (mined) gold is there in the world? 5.3 billion troy ounces How much (mined) silver is there in the world? 45 billion ounces So if money is to be gold base, we just divide 70 trillion by 5.3 billion =$13,200 /oz for gold. or $1500/oz for silver. If both are used (with a 10 oz of silver = 1 oz of gold), then gold drops to $6,600 /oz and silver to $750/oz. One of the old (real) silver quarter dollars was 0.18 oz, it would be worth $140 . Of course, the money in circulation would be match by government gold reserves. If 10% of the gold is privately owned, then the mone...