Man I hope so, this will kill the Feds power!

As President Donald Trump named his picks to fill two influential seats on the Federal Reserve's Board of Governors, the price of gold surged. That may be because one of the them, Judy Shelton, is a believer in the return to the gold standard, a money policy abandoned by the U.S. in 1971.

Shelton is raising eyebrows among mainstream economists for her views, which include slashing the Fed's benchmark rate to zero and pegging the value of the dollar to gold prices. She's not the first Trump pick for the Fed to advocate a return to the gold standard, with his two previous failed Fed choices -- Stephen Moore and Herman Cain -- also advocating for a revival of the policy.

In picking Shelton, Mr. Trump is aiming to place a supporter on the Federal Reserve, which he's argued is slowing economic growth and depressing the stock market by keeping interest rates too high. The Fed currently is maintaining its benchmark rate in a range of 2.25% to 2.5%, but Shelton has said she wants to lower rates "as fast, as efficiently, as expeditiously as possible."

https://www.cbsnews.com/news/trumps-fed-pick-judy-shelton-gold-standard-explained/

We do not even have a paper standard. There is only about 2-1/2 trillion in US currency floating around the world. Our financial system is only based on faith.
The price of gold would have to look more like Bitcoin on steroids in because of the run on gold it would cause. Gold is faith based also. It has no real value. You cannot eat it or drink it. it's only real value is in electronics.

Quote from: carolina73 on July 10, 2019, 08:37:26 AM
We do not even have a paper standard. There is only about 2-1/2 trillion in US currency floating around the world. Our financial system is only based on faith.
The price of gold would have to look more like Bitcoin on steroids in because of the run on gold it would cause. Gold is faith based also. It has no real value. You cannot eat it or drink it. it's only real value is in electronics.

But gold is tangible, unlike fiat currency. If the petro dollar were to collapse, a dollar based in gold would still be accepted, regardless.

Quote from: Solar on July 10, 2019, 08:41:32 AM
But gold is tangible, unlike fiat currency. If the petro dollar were to collapse, a dollar based in gold would still be accepted, regardless.

The value of Gold is similar to artwork. It has little value other than in the eyes of the beholder.
If gold went away tomorrow then what difference would it make in your life other than poorer connections on your electronics? It is tangible because you can hold it but it has no real value in your life.

Quote from: carolina73 on July 10, 2019, 08:57:49 AM
The value of Gold is similar to artwork. It has little value other than in the eyes of the beholder.
If gold went away tomorrow then what difference would it make in your life other than poorer connections on your electronics? It is tangible because you can hold it but it has no real value in your life.

Its value is in its rarity, I don't see the comparison to art at all.  Combine that with the tangible nature of it and its use throughout history it just makes sense use it as the backstop for our currency.





......Of course I have always said, the minute I invest a lot of my savings in gold, a 3 mile wide solid gold asteroid will come in from deep space and gently go into a geosynchronous orbit over the US

Quote from: carolina73 on July 10, 2019, 08:57:49 AM
The value of Gold is similar to artwork. It has little value other than in the eyes of the beholder.
If gold went away tomorrow then what difference would it make in your life other than poorer connections on your electronics? It is tangible because you can hold it but it has no real value in your life.

Really? Then explain Platinum & Palladium. Gold has a scarcity value. It isn't like diamonds which are abundant in the world, gold on the other hand has built in costs for mining, processing, labor  etc.

Quote from: Solar on July 10, 2019, 10:36:13 AM
Really? Then explain Platinum & Palladium. Gold has a scarcity value. It isn't like diamonds which are abundant in the world, gold on the other hand has built in costs for mining, processing, labor  etc.

It is still just pretty to look at. If society ends then you will want food and water not a vanity. That was the art reference.

Quote from: carolina73 on July 10, 2019, 08:37:26 AM
We do not even have a paper standard. There is only about 2-1/2 trillion in US currency floating around the world. Our financial system is only based on faith.
The price of gold would have to look more like Bitcoin on steroids in because of the run on gold it would cause. Gold is faith based also. It has no real value. You cannot eat it or drink it. it's only real value is in electronics.

Mrs. Sup would disagree.

Quote from: carolina73 on July 10, 2019, 10:55:44 AM
It is still just pretty to look at. If society ends then you will want food and water not a vanity. That was the art reference.

But society hasn't ended, that's the point of a gold backed dollar.
A Gold backed dollar would destroy the Fed, that's the real reason for Trump's pick of Judy Shelton.

Quote from: supsalemgr on July 10, 2019, 11:01:25 AM
Mrs. Sup would disagree.

LOL. So would Mrs Carolina.
She was not very happy when I told her that Chocolate Diamonds were industrial quality natural diamonds. Nothing but carbon contamination because they were not fully formed.

Quote from: carolina73 on July 10, 2019, 08:37:26 AM
We do not even have a paper standard. There is only about 2-1/2 trillion in US currency floating around the world. Our financial system is only based on faith.
The price of gold would have to look more like Bitcoin on steroids in because of the run on gold it would cause. Gold is faith based also. It has no real value. You cannot eat it or drink it. it's only real value is in electronics.

It's value is like anything else, what someone will pay for it.

Quote from: carolina73 on July 10, 2019, 08:57:49 AM
The value of Gold is similar to artwork. It has little value other than in the eyes of the beholder.
If gold went away tomorrow then what difference would it make in your life other than poorer connections on your electronics? It is tangible because you can hold it but it has no real value in your life.

You're the first person I've ever heard say that gold is just a perceived value - besides me. It's been my position from the time I learned about gold as a precious metal. Why does it have value? Because it's in demand. But it's soft and not plentiful (supply and demand). But if gold somehow flooded the market, it's perceived value would tank. As you said, a life can't sustain on it. None-the-less, it's been consistently sought throughout human history. What are we missing?

Quote from: topside on July 10, 2019, 06:57:41 PM
. What are we missing?

The simple fact that Trump is using the push for a gold backed dollar to kill Fed' control over the dollar.
You aren't alone, everyone else missed the point of the topic too.

"Gold, Psychology and Society
If the modern paper-money economy were to collapse, gold may not have an immediate use as panic sets in and people fight for their needs.

Yet, humans are group beings and prefer company (on varying levels) over complete independence. It is easier to work in groups than attempt to live off the land on our own. This human traits forces us back to a barter system and finding ways of working together, which leads back to finding a way to exchange good and services easily and efficiently. Gold is the logical choice. If disaster strikes, gold is the metal we will revert to if paper-money, and the system that supports it, no longer exists. It is one of the only substances on earth with the qualities for the job.

Even if a gold has no intrinsic value to the person holding it (he or she can't eat it or drink it), if an agreement is made that turns metal into coins which can be used for easy exchange of goods, that coin takes on a value. Because others believe it has value, you do to, and because they think you value it, they value it too.

The Bottom Line
From a elemental perspective, gold is the most logical choice for a medium of exchange for goods and services. It is abundant enough to create coins, but rare enough that not everyone can make them. It doesn't corrode, providing a sustainable store of value, and humans are physically attracted to its color and feel.

Societies, and now economies, have placed value on gold, thus perpetuating its worth. It is the metal we fall back on when other forms of currency don't work, which means it always has some value as insurance against tough times."

Quote from: Abe on July 11, 2019, 05:22:00 AM
"Gold, Psychology and Society
If the modern paper-money economy were to collapse, gold may not have an immediate use as panic sets in and people fight for their needs.

Yet, humans are group beings and prefer company (on varying levels) over complete independence. It is easier to work in groups than attempt to live off the land on our own. This human traits forces us back to a barter system and finding ways of working together, which leads back to finding a way to exchange good and services easily and efficiently. Gold is the logical choice. If disaster strikes, gold is the metal we will revert to if paper-money, and the system that supports it, no longer exists. It is one of the only substances on earth with the qualities for the job.

Even if a gold has no intrinsic value to the person holding it (he or she can't eat it or drink it), if an agreement is made that turns metal into coins which can be used for easy exchange of goods, that coin takes on a value. Because others believe it has value, you do to, and because they think you value it, they value it too.

The Bottom Line
From a elemental perspective, gold is the most logical choice for a medium of exchange for goods and services. It is abundant enough to create coins, but rare enough that not everyone can make them. It doesn't corrode, providing a sustainable store of value, and humans are physically attracted to its color and feel.

Societies, and now economies, have placed value on gold, thus perpetuating its worth. It is the metal we fall back on when other forms of currency don't work, which means it always has some value as insurance against tough times."

Is true, regardless of what the conditions, gold will always have value, even after all currency collapses. If someone is hungry and searching for food, it is a guarantee that if he finds gold during his travels, he will make an effort to retain it or in the least, bury it.
Try that with Bit Coin.

For whatever reason, man has found value in gold and once civilization rose, gold became the goto metal for exchange, as time passed nations began to hoard it as a hedge against war and famine. This hoarding forced the value of the metal to rise out of controlled scarcity.
It's a virtual guarantee that even if a complete collapse of society were to occur, people are in place to resurrect our govt. Good or bad, gold will be the one currency to retain value as society returns to its feet.