Leave the fire ashes, what survives is gold.

[Emil Miller]

This quotation from Robert Browning would seem to have particular resonance now that calls are growing louder for a return to the gold standard.
Belief in paper money is being shaken by the day and there is no shortage of Internet doomsday sites in consequence.
Here is one that should not be taken seriously, especially as it mentions Lord Rees Mogg in support of its theory, but given that no independent audit appears to have been made of the gold in Fort Knox for many years, it does raise the question as to what would happen were the gold found to be non-existent.
What do LitNetters think in terms of gold vs cash?

http://www.thecomingdepression.net/countries/eurasia/is-china-trying-to-destroy-the-dollar/

[The Atheist]

...but given that no independent audit appears to have been made of the gold in Fort Knox for many years, it does raise the question as to what would happen were the gold found to be non-existent.

Wouldn't matter at all.

The amount stored there nowadays is alleged to be a mere ~$235 billion. Paltry.


What do LitNetters think in terms of gold vs cash?

Gold only has the value that people are prepared to pay cash for it.

The days of gold being at all relevant are long, long gone. The toal value of all the gold in existence is a fraction of the derivative financial products market on any given day.

Strictly for conspiracists who can't add.

[Emil Miller]

Wouldn't matter at all.

The amount stored there nowadays is alleged to be a mere ~$235 billion. Paltry.



Gold only has the value that people are prepared to pay cash for it.

The days of gold being at all relevant are long, long gone. The toal value of all the gold in existence is a fraction of the derivative financial products market on any given day.

Strictly for conspiracists who can't add.

With gold now around $1700 per oz. clearly there are people who are prepared to pay cash for it. The current downgrading of the US credit rating by Standard and Poors to AA+ will probably see gold rise further, and the fact that Moody's has cast doubt on the US current situation and will give a formal rating at the end of this month looks like seeing gold set for even further gains. Meanwhile Fitch is sitting on the sidelines saying nothing but sooner or later they will have to give an updated valuatioin of the current US scenario.
Gold watching gets more interesting by the day.

[The Atheist]

Gold watching gets more interesting by the day.

That's true - gold's always interesting to watch. There are definitely a number of small punters betting on it right now.

You just need to factor in that gold still hasn't wiped out losses from inflation in the past 35 years even at $1730. Been pretty useful the last couple of years, though.