I have a question for you. Do you think the United States will go back to the Gold Standard? For those of you who do not know what I mean, the Gold Standard, in general, is a system where a nations’ currency is backed by a physical commodity.
Libertarians have been a big proponent for such a change, often referencing the drop in the value of the dollar as well as the growing influence of the central banking system. With a government that can print money with relative ease, the ability to tie the governments’ hands is appealing. However, with the limited supply of gold and an ever-increasing demand for the metal in high-tech devices, the price of gold might become too significant for use in a currency market. As it is, gold neared $1,100 per ounce today, and some estimate that switching to a Gold Standard would cause the price of gold to double due to the amount of money currently in circulation today.
Maybe I should buy gold to hedge a bet against this switch. In a perfect world, when I make a buy gold prices will increase, and therefore putting me in a better financial position to weather the growing national debt storm. There are companies, such as Goldline International, that currently make the purchasing of gold easy and convenient. One would hope that remains the case if the nation were to revert back to a Gold Standard.
So what do you think? Do you think the US will go back to a Gold Standard? Should it? Would you rather buy gold instead?