A friend of mine and I always argue about gold being a currency in today's modern society. My friend believes that gold, alongside copper and silver, should be used as a modern day form of currency. I don't agree with this as I think gold, like other natural resources, are limited. But then again, the "legal tender" we're using right now has pretty much no value as it is just paper and not backed by anything else of value (e.g. gold).

How do you think getting rid of paper money and bringing gold into the economy would play out? Is it possible now?

This post has been edited by objectifyme: Jul 18 2010, 01:06 AM

the one who rule the world right now wont be adopting gold as the currency... if they adopt it now, they can't be manipulating us anymore ..

with paper money, they simply print it more more more and more .... without having to be backed by anything...

and us... are the ones who are suffering coz the the values of our limited money that we have are decreasing day by day ....

if they adopt gold, there wont be war as there's no capital to fund the war as the gold is very limited... but with paper money, they can simple print it more and more and fund the RnD, Military Equipments, people etc...

tell this to any economist and they will laugh.....
try to understand how economy works 1st before posting...

Care to explain?

This post has been edited by hullabaloo_bard: May 22 2010, 12:06 PM

try to read this lads and ladies

www.rayservers.com/images/ModernMoneyMechanics.pdf


since i learn gold as ultimate remedy to this capitalist economy era , i would like to see gold as a weapon on maintaining economy peace in this asia region .

I'm pretty sure , US and those dirty capitalist won't like this way , and they will begin war if gold rised as main currency

Gold as currency? i LOL-ed so hard....

Then you can imagine those millionaire throw gold coin like in comic already...

Its just impossible, our beloved world-police wont agree since that would mean the end of manipulating us =D

How are you going to cut up the currency? I'm not updated on the price of pure gold now, but the last time I saw it was some RM80 per gram. Can't really go to McDonalds and pull out your gold nugget (which I would probably be worth some 5 figures in ringgit), then take a blade, slice off exactly one eighth of a gram (which is probably pinhead-sized) and then give it to the cashier, who would have to measure it on an ultra-sensitive scale, and then somehow keep it with the rest of the gold...

Money is just a medium of trust that you can exchange for other goods. This is the basic principal of money

Why gold is valuable?
It is solely because it's scarcity that make it valuable.
If gold availability as abundant as iron/steel/stone. Then it is just a conductive metal.

So gold never a suitable candidate as money due to its scarcity.
The scarcity of gold will hinder the economy growth.

For simplicistic eg.

One day you go to bank to apply your house loan or car loan. Banks tell you, there is not enough gold to loan you, so you cannot take a loan.
You cannot take a loan to buy the car. The car manufacturers have no business to do, need to lay off worker and sequence event going on to depress the economy.

If one knows how economy works, then gold surely is not a suitable candidate at all.

Gold coins was currency in the past.


Now it isn't, simply because it's not so easy to print money out of thin air with gold.


The problem with capitalism is uncontrollable consumption, and gold would help to prevent that.


Fiat/Debt money won't.

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Added on May 22, 2010, 3:30 pmSame reason why doctors think they know best. They go to school, they have to be right.


Same reason why jihadists think their religion is the right one.


This post has been edited by garytong: May 22 2010, 03:30 PM

As you have highlighted also.

To make curreny money valuable, then just control the print money part, which is depended on ourself.

If ourself is not willing to control, the use gold won't solve the problem as well. As human is always creative, even you use gold as currency, human also can come out a way to get rid of gold limitation or abuse the system.

For eg. we know when we doing business time, there is no immediate or direct transaction of money/or gold, credit term is applied. So in the credit term, you don't need physical money/gold or whatever as a medium.

With current economy size, there is not enough gold around to fulfill or replace the money around.
In the ancient past, economy size is not as same as today modern world. Also there is little banking system around, even got, it is those elementary banking system only.

Now we live in a world with credit term, commercial paper guarantee, various swap option etc, which is not as simple as gold coin trade anymore.

Sorry if i tumpang TS thread but governments can just print money when economy's down right? 'Stimulus package'. Or are there governing bodies that supervise every country's money factories?

here's the direction to look......
what will happen if money is printed without being controlled? that will be the inhibitor and regulator....

Overprinting of money leads to hyperinflation domestically and severe currency depreciation. Think of money as 'deferred goods/services'. If you do not increase your goods/services, any amount of money would just reflect back to the old level of goods/services. Look at the historical wars and what happens when countries increase the money supply to fund wars. From the Spanish conquistadors to the German Nazis, it all lead to the same ramifications to the economy as a result of 'money printing' to fund war.

And using gold as currency would just bring us back several hundred years. A gold backed currency (gold standard) is more practical. And I don't think it would actually do much to tackle the boom and bust of the economy. The great depression happened in an era where countries were still adopting the gold standard.

The proportion of available gold does not correlate well with the population on this planet.


To make gold feasible again, we must cut down our population to pre ww1 era.




A lot of people have got to go..... to heaven or hell, take your pick.

Hell. I hear there are more babes there.

How about going back to the barter system. Would it eliminate some of the undesirable things posed by gold? (On top of eliminating access to much of our wants and forcing us back to basics - our needs.)

This post has been edited by Beastboy: May 22 2010, 10:38 PM

worse = ="

if a bread seller want a car, are you going to cut the car into pieces?

No. I'll just make him deliver me 3 loaves of bread a day for the next 10 years.

that is one cheap car....

doesn't work.....need something universal that everybody wants........
got person want to buy car from you by trading bread with you....but you don't want bread.......hence trading is limited...

Ya, wait till u see a photo of it.

Yes trading will be limited. It forces u to produce only goods that ppl are willing to trade for, which isn't so bad if everyone's back to basics: food, clothes, medicine, horseshoes. Craftsmanship will rise again as ppl concentrate only on producing necessities. Yes I admit, bartering will never do what paper money can do so no more Dow Jones, etc. But isn't speculative markets one of the first things to go if gold-backed currencies disappear anyway?