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Gold backed money help

Hello everyone. I dont understand a gold back currency. How does it differ from our tree backed currency? Gold is not that rare there is enough of it to fill all these jewelry stores. I mean what makes gold valuable? The money people pay other people to mine it or what ever.

I dont see a differance in our tree backed currency we pay people to harvest the trees to make it. And really shouldnt paper be more valuable than gold? You can do much more with paper than gold. Really what can you do with goldthat makes it so valuable? Make some jewelry with it? I can wipe my bum with paper but i really couldnt do anything with gold if it wasnt for some reason valuable. Ever try wiping ur bum with gold?

Soooo i dont understand why gold is valuable. Seems it should be just as fiat as paper. Thanks every1 who trys to help me understand this. FLAME ON




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Gold or trees,

They are both commodities, gold is much better because of its longevity.

Both are better than backing our currency with debt, which is now the case.

Are you a Ron Paul supporter?

Ask yourself, why would Ron Paul write an essay entitled "What the price of gold is telling us"?

Why would the American founding fathers write that only gold and silver should be legal tender in the constitution?

You're trying to tell me that gold is not sufficiently rare? That's funny!

I've had other people tell me that gold is TOO rare be used as money. The "too rare" objection is alot closer to the truth, but just like your objection, it completely misses the point.

Ron Paul wants to repeal laws that prevent you from using alternative currencies.

Let the market decide what should be used as money. End the central bank and don't let government impose its regressive "inflation tax" any more.

http://brits4ronpaul.blogspot.com/

http://lpuk.blogspot.com/

http://northwestlibertarians.blogspot.com/

i love u guys

ok good shit thanks guys very informative. spelling?

ok next question

ok so i was wrong about the rarity of gold. That being said if we did go to a world wide gold standard would there be enough gold to go around?

You just use different denominations

If there is not enough to go around you simply use different denominations of coins. Same with apportioning our current paper standard to a gold standard. You simply tie the amount of dollars in circulation to the amount of gold and silver you have until the system equalizes. Supply and demand works in every area of economics. So if you tied all the gold to the supply of money it would likely be $6000+ an ounce. Supply isn't the problem as you could just use 1/10 or 1/20 fractionals to preform the task that 1 oz coins would before. The same goes for silver and platinum.

"Greater than the force of mighty armies is the power of an idea whose time has come"
- Victor Hugo

"Greater than the force of mighty armies is the power of an idea whose time has come"
- Victor Hugo

All these questions can be answered

go to kitco.com or silverseek.com and look at their forums. All your questions have been answered before.

Any amount will do.

Especially in the days of electronic transfer. You see the idea of a gold backing means that for every "note" in circulation there is a corresponding amount of gold in a vault somewhere, no matter how small. Cash transactions can still be rare, or the gold can be mixed with other metals to make sufficient coins.
Fractional-reserve banking is the real fraud in the system, Which even started on a gold standard, they printed more notes than they had gold in reserve. Lending out something you don't own is fraud, using something that you were entrusted to care for is embezzlement, they need to be treated as such.

thanks

hmm ok thanks guys.

Paper?

It's just a few strokes on a keyboard. In 10 seconds they can make as much as they want. "Printing" is just a metaphor.
And you're right, paper in theory could work. The problem is it's so cheap to make that you'd need truckloads just to buy your weekly groceries.
Gold is perfect money. It is reasonably scarce and hard to produce, so the supply will stay somewhat stable, gold supplies grow about 2% per year. It's portable, a large value doesn't take up that much space and could be carried. It is durable, gold doesn't rust or tarnish, you could bury it in your backyard and 200 years later it'll still be shiny. It is easily measurable, just use simple weights and purity. It's "fungible", which means it is freely exchangeable or replaceable, we could swap coins and be no worse or better off than before. Lastly, the fact that it has no real practical use is actually a benefit. You never have to make a hard decision about what to use it for. In a paper standard every time you sit on the toilet you'll have to ask yourself "should I use this toilet paper to wipe or to buy lunch," silver is used in a lot of electronics, that's inefficient you should be able to have a dollar and a cellphone. Gold has been tried, it works.

I've read that all the gold

I've read that all the gold mined in the history of the world would fit inside of a single tennis court, something like a 19 meter cube. Less than 1 ounce per person in the world.

The difference between gold and paper money is that it is impossible for the government to make more of it out of thin air.

Currency should be a store of value which is traded between parties, but what good is it if your government can take away the value of the currency simply by printing more of it?

...

According to what I've read in multiple sources,

All the above-earth gold in existence would only fill two olympic-sized pools. Now divide that between all the people in existence. Remember, there's not a hell of a lot of gold in a typical 10 or 14k piece of jewelry. Gold takes work to mine (much more than trees), and its relative stable supply makes it a good store of work.

Paper is bad because counterfeiting is illegal, which is what the FED is doing.

I want a gold tree!

Please?

Okay, seriously. Good on you for asking. It beats the heck out the idiot I saw the other day, who pronounced that during an economic collapse, gold would be just another doorstop. Obviously, he didn't want to ask.

I think between these two links, you will find the answer.

http://www.lewrockwell.com/rockwell/whygold.html
http://www.theqandatimes.com/artman/publish/article_954.shtm

http://www.cafepress.com/tkls

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http://www.zazzle.com/i_voted_for_ron_paul_bumpersticker-128...
http://www.cafepress.com/tkls

gold is hard

to inflate, being that there is a much more limited supply. it is much more durable than paper. true, paper money can hold value if its not inflated and as long as people believe it is good. but paper is not recognized as being valuable, whereas gold is.

"The state is the great myth where everyone tries to live at the expense of everyone else." - Frederic Bastiat