Cash Hash » Cash Hash » Cash Gold » What currencies if any) are backed by gold and silver?

  #1 (permalink)
: or any other real assets? If the dollar crashes, which foreign currency would be best to own? I've heard Switzerland is good because their banking is private.
Carl- Gold is a hedge against inflation. Our dollar used to be backed by gold but now, with every dollar created through printing or electronically, gold increases in price.

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  #2 (permalink)
: Something I don't understand, how is gold an asset any more than paper cash? In the "real" world Gold is just another metal.. water is the most valuable resource... give to Caesar that which is Caesars
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  #3 (permalink)
: No currencies are backed by gold.

The conspiracy theorists love the "if/when the dollar crashes" scenario. If that happens, every currency on the planet is junk. Gold and silver would be worthless shiny metal. It would be anarchy, not an orderly decline where Swiss Francs retain value. i.e. Canned goods and ammunition time.
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  #4 (permalink)
: The majority of the worlds currencies are backed by gold held in central bank reserves. If gold was not an important part of any country metals reserves then there would not have been the recent incidences of gold being moved from the USA by foreign countries such as Venezuela and Germany as well as others.

It is the traditional economic haven when times are tough, Bretton woods agreements alone could not and did not give credence to the global financial framework.
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  #5 (permalink)
: Obviously Jerry is right but you should understand why no currencies are backed by anything.

Suppose that some country decided to back their currency with gold at some fixed exchange rate, say 1usd = 1/1600 oz of gold. That means that USD is tied to international gold supply and demand. Then someone like China decides that they are going to devalue their currency by printing Yuan. Then goods from China become less expensive than goods from the US and trade moves to China from the US. Pretty soon everyone in teh world is doing that to the US who can't respond because we alone have hard currency. This is called "Beggar Thy Neighbor" and means that pretty much the entire world needs hard currency or nobody can have it. Obviously, there is nothing in teh world that can capitalize the world's productive activity so the entire world can't be on hard currency.

There just aren't good ways around those problems....
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  #6 (permalink)
: None.
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  #7 (permalink)
: Right now there aren't any... they're all fiat. Even the Swiss decided to peg theirs to the euro.
Swiss banking isn't private any more... they report to the IRS now.
The BRICS nations are all amassing gold. They're inking trade agreements with other countries to trade in each other's currencies (circumventing the dollar as reserve currency for trade). Right now, they're all just trying to maintain until the dollar and euro collapse, then they will roll out new currencies backed with gold, oil, etc.
My recommendation is to get out of the stock markets, keep only enough money in the bank to pay bills, keep enough cash on hand to pay a couple months' bills, and then head down to your local coin/bullion store and buy as much physical precious metals as you can, and carefully store it yourself.
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