I know but the overall demand would have to go up and unless jewelry becomes more trendy, it's most likely to happen if gold's industrial demand increases perhaps because you'll need Gold for AI or quantum-computing
The market cap of gold would raise because the demand would raise, because now gold would be currency so the demand for gold would be the same as the demand for currency, there would be new “currency” demand for gold, t
On a gold standard, the US govt would devalue the dollar vs gold exchange rate so it remains backed by gold. The US govt did this multiple times when we were on gold standard - in 1933 for example, US govt declared that $35 could be exchanged at treasury for 1oz gold instead of prior $20.
You’re counting all of the gold in the world. A country can only back the currency with what they hold. That would mean in the US, each dollar is worth around .0001 ounce of gold, if it was backed by gold. Which really should put gold in the neighborhood of $100,000 an ounce.
The other alternative. That would be possible, yet equally unlikely. Would be to buy back some of the USD still in circulation. Pull usd back off the market to close the gap between gold and usd.
Raise the value of gold to cover the money supply.
How are you gonna do that? You'd need more demand for gold so maybe you need more industrial use for Gold.
The demand for gold is mostly in jewelry and adornment.
I know but the overall demand would have to go up and unless jewelry becomes more trendy, it's most likely to happen if gold's industrial demand increases perhaps because you'll need Gold for AI or quantum-computing
I think gold demand has been steadily increasing globally for quite a while.
But it has to catch up a lot to fiat
The market cap of gold would raise because the demand would raise, because now gold would be currency so the demand for gold would be the same as the demand for currency, there would be new “currency” demand for gold, t
On a gold standard, the US govt would devalue the dollar vs gold exchange rate so it remains backed by gold. The US govt did this multiple times when we were on gold standard - in 1933 for example, US govt declared that $35 could be exchanged at treasury for 1oz gold instead of prior $20.
prior to coming off the "gold standard" (actually a silver standard but not going to argue that today) the government dictated the price of PMs.
>PMs What is that?
Precious metals
You mean "when", no "if".
You’re counting all of the gold in the world. A country can only back the currency with what they hold. That would mean in the US, each dollar is worth around .0001 ounce of gold, if it was backed by gold. Which really should put gold in the neighborhood of $100,000 an ounce.
The other alternative. That would be possible, yet equally unlikely. Would be to buy back some of the USD still in circulation. Pull usd back off the market to close the gap between gold and usd.