Should we go back to gold standard?

[sweep_shot]

Fiat currency is highly vulnerable and cannot be trusted. Should we go back to gold standard?

Both fiat currencies and digital currencies are literally backed by nothing. They are producing money out of thin air. There is no accountability and it devalues currency.

Discuss.

 

[Gilly]

Fiat currency is highly vulnerable and cannot be trusted. Should we go back to gold standard?

Both fiat currencies and digital currencies are literally backed by nothing. They are producing money out of thin air. There is no accountability and it devalues currency.

Discuss.

Do you trust those that hold your gold?.

 

[sweep_shot]

Do you trust those that hold your gold?.

I do not but I trust gold better than I trust fiat currencies.

They are simply producing money out of thin air currently (backed by nothing).

 

[Gilly]

I do not but I trust gold better than I trust fiat currencies.

They are simply producing money out of thin air currently (backed by nothing).

Gold prices can be manipulated by banks.

 

[sweep_shot]

Gold prices can be manipulated by banks.

So, what can be the best solution?

Should we go back to good old barter system? Maybe a combination of barter and gold?

 

[Bigboii]

Economy will colapse

 

[sweep_shot]

Economy will colapse

Well, current economy is supposed to collapse also. They basically run out of money and then print new money. How long do you think they will go on with this?

 

[The Bald Eagle]

After a brief decrease, gold prices in Pakistan surged once again, with the price per tola reaching Rs307,000, marking an increase of Rs3,000 on Friday

According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of 10 grams of gold rose by Rs2,571, reaching Rs263,203

On Thursday, the price of gold per tola had dropped by Rs3,000, settling at Rs304,000.

Meanwhile, the international gold price saw a rise on Friday, with the APGJSA reporting it at $2,921 per ounce, up by $28 from the previous day.

In addition, the price of silver also increased by Rs31, reaching Rs3,400 per tola.

Source: The Express Tribune

 

[The Bald Eagle]

Gold prices soar to all-time high in Pakistan, reaching Rs314,000 per tola​

Gold prices soared to a record all-time high in Pakistan on Friday in line with their increase in the international rates. In the local market, gold price per tola reached Rs314,000 after a single-day rise of Rs4,700.

The growing volume of global purchases is driving local gold prices to new records, as the price of gold in the international bullion market surged by $46 per ounce after an 18-day pause, reaching $2,988 (Rs 2,988).

Similarly, local gold prices also reached historic highs on Friday. The price of 24-carat gold per tola increased by Rs 4,700, reaching Rs 314,000.

Meanwhile, the price of gold per 10 grams also saw a significant rise, increasing by Rs 4,030, reaching Rs 269,204.

Additionally, silver prices also saw a notable increase, with the price of one tola of silver rising by Rs 90 to Rs 3,530, while the price for 10 grams of silver increased by Rs 77, settling at Rs 3,026.

It is important to note that just the previous day, global gold prices increased by $27 per ounce, and local prices rose by Rs 2,800 per tola, pushing gold to its highest price ever.

Source: The Express Tribune

 

[sweep_shot]

Gold prices soar to all-time high in Pakistan, reaching Rs314,000 per tola​

Gold prices soared to a record all-time high in Pakistan on Friday in line with their increase in the international rates. In the local market, gold price per tola reached Rs314,000 after a single-day rise of Rs4,700.

The growing volume of global purchases is driving local gold prices to new records, as the price of gold in the international bullion market surged by $46 per ounce after an 18-day pause, reaching $2,988 (Rs 2,988).

Similarly, local gold prices also reached historic highs on Friday. The price of 24-carat gold per tola increased by Rs 4,700, reaching Rs 314,000.

Meanwhile, the price of gold per 10 grams also saw a significant rise, increasing by Rs 4,030, reaching Rs 269,204.

Additionally, silver prices also saw a notable increase, with the price of one tola of silver rising by Rs 90 to Rs 3,530, while the price for 10 grams of silver increased by Rs 77, settling at Rs 3,026.

It is important to note that just the previous day, global gold prices increased by $27 per ounce, and local prices rose by Rs 2,800 per tola, pushing gold to its highest price ever.

Source: The Express Tribune

Gold is always a reliable investment.

Many fads come and go. Gold remains stable.

 

[The Bald Eagle]

Gold is always a reliable investment.

Many fads come and go. Gold remains stable.

No fiat money, no petro dollar but Gold remains the only stable commodity and currency standard

 

[KB]

I am not an economist but from what I have studied of the inter-war period, the Gold Standard contributed to a turbulent 1920s and 1930s. Its weaknesses as a system were laid bare in this period.

While the Gold Standard was largely suspended during the First World War, countries clamoured to return to it after the war ended. Economic orthodoxy at the time still supported the disciplining role that the Gold Standard played. Governments could only increase money supply if they had additional gold reserves. The President of the US, Herbert Hoover put it succinctly in 1933: “we have gold because we cannot trust governments.”

The theory of the Gold Standard sounded good. If a country ran a trade deficit, its gold stocks would deplete (as it had to pay for those imports in gold). A lower stock of gold would would reduce the amount of money in circulation, eventually leading to a reduction in prices until that country became competitive enough to increase its exports and therefore achieve trade equilibrium. On the other hand a country with a trade surplus would increase its stock of gold and eventually there would be an increase in the circulation of money, leading to a price increase until its trade competitiveness abraded.

In the post war period there were two problems with the theory: a decrease in price implied a decrease in the price of labour i.e. wages. To state the obvious, no one likes to see their wages decrease and in the post war period labour had become more assertive and more organised. The Gold Standard assumed flexible prices, but the price of labour was now stickier. On the other side, those that witnessed an inflow of gold (predominantly the USA and France) were not prepared to see prices rise. They therefore simply held gold in their reserves rather than expanding the money supply.

Today the interest rate has become a critical monetary policy tool to influence economic activity. Under the Gold Standard, countries had little control over interest rates. When the Fed raised interest rates to bring down American prices, there was a capital inflow to the US leading to a gold inflow to the US. Other countries were therefore forced to raise interest rates if they did not want to deplete their gold stocks. In a time of recession this only created more pain. Indeed the Gold Standard contributed to the depth of the Great Depression.

There was one economist who was prescient at the time. John Maynard Keynes - probably the most famous of twentieth century economists - labelled the Gold Standard a “barbarous relic” that was no longer suitable with “the spirit and requirements of the age.”