So... just out of curiosity... for those who prudently bought gold coins to hedge against the financial chaos, will we get screwed? For example, the government comes out and says, "we are pegged to gold which is set at $aw00 per ounce" .
I mean, they can't peg a currency to a fluctuating value such as gold in the marketplace.
The value of the dollar would have to be pegged to a miniscule weight of gold to avoid the US becoming bankrupt overnight (unless the Fed is secretly stashing a million tonnes of the stuff).
In which case the revalued dollar rate for your gold would be huge in comparison to what you paid.
And since most other currencies are valued against the dollar, they would also be tentitively pegged to gold, hard to say what the details of this shockwave would produce, but cheaper gold is not one of them as far as i can tell.
So... just out of curiosity... for those who prudently bought gold coins to hedge against the financial chaos, will we get screwed? For example, the government comes out and says, "we are pegged to gold which is set at $aw00 per ounce" .
I mean, they can't peg a currency to a fluctuating value such as gold in the marketplace.
The value of the dollar would have to be pegged to a miniscule weight of gold to avoid the US becoming bankrupt overnight (unless the Fed is secretly stashing a million tonnes of the stuff).
In which case the revalued dollar rate for your gold would be huge in comparison to what you paid.
And since most other currencies are valued against the dollar, they would also be tentitively pegged to gold, hard to say what the details of this shockwave would produce, but cheaper gold is not one of them as far as i can tell.
Don't assume that the US or UK governments will have any say in the matter of Gold's price on the International markets,
BRICS will be setting the price.
I don't, but once the genie is out of the bottle we shall see true price discovery.
It would certainly torpedo Comex.
I have no idea about how that would be done. At least they won't be able to just keep printing and our money lose so much values