[Jim W N]

We need to back to a gold standard for a stable, reliable, and strong dollar which will facilitate economic growth through investment and business development.

[DoodleDawg]

We could set the dollar/gold ratio at, say, $1,100 an ounce. If the price rose above that level, it would mean there was too much money in the economy, and the Fed would tighten. If it dropped below, the Fed would ease.

Since qold futures trade on a number of commodities markets then wouldn't the price of gold fluctuate daily? And wouldn't the Fed be tightening then loosening then tightening the supply of money hourly?

[eyeamok]

The purpose of a gold standard is to ensure that a currency has a fixed value,

WRONG sort of.

A Gold Standard Prevents GOVERNMENT FROM DEVALUING MONEY by limiting how much they can PRINT!

[PAR35]

Looks like Steve Forbes might be long in gold, and is trying to pump it up before he loses his shirt.

[who_would_fardels_bear]

What I have read suggests that if you want the dollar value of gold to remain relatively fixed, and you want it to do so in reality and not just by government decree, is to guarantee that the increase in the gold supply matches the increase in global wealth.

But how does one measure global wealth? And who would be setting the definitions and doing the accounting?

And even if you could measure global wealth, how would you go about guaranteeing that only so much gold is mined and refined? Would we have to create some sort of cartel like De Beers if too many companies started mining too much gold? What would happen if they didn't find enough gold? Would we have to destroy a proportionate amount of wealth?

In the 'good old days' gold was pretty much valued for purely aesthetic reasons. It was easy to just affix some random price to it. However, now gold has many industrial uses so it has real intrinsic value that may go up or down depending on supply and demand.

And what about all those derivatives? Gold today will not be treated like gold in the past. It will not just be a commodity but will be a raison d'etre for numerous derivatives upon derivatives upon derivatives which will result in wild speculation leading to massive swings in the global price for gold.

[DaveyB]

Its not called the “gold standard” for nothing.