To: frithguild
How does the price of gold stay fixed? They are constantly mining new sources of gold. If the government set the dollar to the gold standard they would buy gold to back up the dollar. In fact, the value of the dollar could be manipulated by how much gold the government actually has on hand to back the dollar.
Gold, like everything else, is a commodity that is traded. If Gold had a set value, nobody would trade it, what would be the point?
To: Albert Barr
How does the price of gold stay fixed?The supply of gold is far more transparent than fiat money. Traders will know the amount of reserves and the potential of any mining operation or any other source of increased supply. These are constants. Historically, nothing has kept it's value like gold.
Gold is traded no because governments change the value of their currencies to devalue their debts. It is stealing from those who have accumulated capital - nothing less. Using a gold standard puts a check on this power of government as an issuer of currency.
11 posted on
02/13/2007 5:51:12 AM PST by
frithguild
(The Freepers moved as a group, like a school of sharks sweeping toward an unaware and unarmed victim)
To: Albert Barr
How does the price of gold stay fixed? Pass a law that says the amount of gold a dollar will buy will not change from today's price.
12 posted on
02/13/2007 5:54:13 AM PST by
frithguild
(The Freepers moved as a group, like a school of sharks sweeping toward an unaware and unarmed victim)
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