Should we return to the gold standard?

[Rambo35]

The opinions differ as some think we should have never moved away from the gold standard and that currencies are essentially worthless in today's world. There are advocates to return back to the gold standard, but that would likely wreck havoc on the financial system as deleveraging is likely to force heavy corrections.

On the other hand maybe that is what we need in order to move forward, a return back to normal. To what extend does gold have an impact on currency pairs now since there is no more gold standard?

Any thoughts on this topic?

 

[Fxpipper]

What? No, not a chance..does gold have an impact on currencies? Yes, but it is rather limited. A return to gold standard would mean a rerun of the "old and tired", and you bet your last dollar it will cause havoc in plenty..

 

[Rambo35]

It will wreck havoc I agree, but we would also return to value in my opinion.

 

[Fxpipper]

True but there's the other side of the coin, even if in the short time it might provide a more stronger basis for currency valuation and undercut volatility to an extent, remember that gold is a commodity that is being fast depleted. In short, expect gold to go up and keep rising and given this, you can work out the impact on other currencies and other metrics if we return to the gold standard..

 

[Enivid]

What do you mean by "return to value"?

 

[Rambo35]

What do you mean by "return to value"?

What I mean is that right now currencies are not really backed by anything and while the markets come up with a value there is no real matter behind it. Currencies should be backed by assets, gold or any other true assets. That is just my opinion on it.

Right now the USD is not worth the paper it is printed on yet is the reserve currency of the world with no assets to back it up. Debt-to-GDP ratio is over 100%.

 

[zied.gad]

GOLD is the best thing in forex for quick earn.
however you need some money to begin trading with it, that's my problem actually..

 

[Fxpipper]

Come on, if the total currency that is being junked out by all the nations world wide had to have a real asset to back it up, it would be termed as worthless for the simple reason the world does not have enough assets to back it up and the few assets that we have, by way of gold or any other precious metal is limited not by choice but by availability. A return to gold standard is foolhardy and apart from that, just not possible any longer..

 

[Enivid]

Currencies should be backed by assets, gold or any other true assets.

Why?

Right now the USD is not worth the paper it is printed on yet is the reserve currency of the world with no assets to back it up. Debt-to-GDP ratio is over 100%.

USD is currently worth much more than the paper it is printed on. Otherwise Bureau of Engraving and Printing would come up with a cheaper design.

 

[Rambo35]

Come on, if the total currency that is being junked out by all the nations world wide had to have a real asset to back it up, it would be termed as worthless for the simple reason the world does not have enough assets to back it up and the few assets that we have, by way of gold or any other precious metal is limited not by choice but by availability. A return to gold standard is foolhardy and apart from that, just not possible any longer..

It is not possible right now I agree, but it partially explains the mess we are in.

 

[Rambo35]

Why?



USD is currently worth much more than the paper it is printed on. Otherwise Bureau of Engraving and Printing would come up with a cheaper design.

Opinions differ which creates a marketplace.

 

[Fxpipper]

Yes but going back to what created the issue in the first place is not the solution..but I do get it, given the current situation, the tendency to fall back to gold as the standard is tempting..

 

[bablogfx]

Forex will disappear with coming Gold standard or will be significiantly changed. do you really want that?

 

[Gold PriceZ]

The gold price is going up, it is very difficult to turn back in the near future.
Good occasion for investors in the long run only. Day traders should be alert.
Thanks
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[Ary Barroso]

The gold price is going up, it is very difficult to turn back in the near future.
Good occasion for investors in the long run only. Day traders should be alert.
Thanks
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[URL deleted]

Last year; gold was too much aggressive on the buy side; and till now the momentum is same! As a result; I have same intention.

 

[Onanak]

This is very complicated question with no easy answer. The real question is why have countries moved from gold standard on a first place? Simply because they are left without gold in their Treasuries. So, returning to gold standard would imply chaos on all markets

 

[Ulacan]

If you remember the history you may really realise that something really needs to be done there. Kennedy was killed by the elites cause he wanted to return the golden standart anyway. I do get it have something serious in this place, that's for sure.

 

[Oswald]

If we go back to Gold standard in this moment of the global economy, then we can be certain that the economy of almost whole world will just and simply collapse. Many countries just dont posses these commodities any more. World elite knows this very well, for sure

 

[Enivid]

If we go back to Gold standard in this moment of the global economy, then we can be certain that the economy of almost whole world will just and simply collapse. Many countries just dont posses these commodities any more. World elite knows this very well, for sure

Even in gold-rich countries, reenactment of the gold standard will cause extreme money supply tightening, which would create a crisis of such an extent that the Great Depression of 30's will look like a nice thing.

 

[Oswald]

Based on current economy in the whole world, there is absolutely no chance that anybody would even think to go back to gold standard, as it would be completely insane thing to do. I think that during 1980s world reached this no-turning back point.