[Gold] a commodity, and the central bankers have decided
a long time ago that gold will never again act as a currency
of last resort.[stop.]
Yes, they spent the last 5 -10 -20 years keeping the equation
of Supply & Demand to result in price of gold to be US$250
using their huge reserves of physical gold being sent into
the markets needing physical.
But what if after 20 years they have little left?
If so then they can not keep gold's price lower any longer,
and also, if the central banks of nations have in effect transfered
their physical gold into private hands, then they could not,
even if wanted, have a gold standard attached to any fiat
currency since they would need first to buy back that gold
they sold into the markets these past 20 years, and if they
tried the price using supply/demand would make it too expensive.
So yes, a gold standard good or bad can not be done.
But the central banks heavy hand to keep gold from becoming
a safe haven or store of value has failed now that they have not
that huge physical supply to flood the markets. Gold as paper
or derivatives today is huge and sick and will only make holding
the physical extra desirable. Gold will always be expressed
in US dollars, and since exchanged rates between currencies
of all nations exclude any having a gold standard or backing
it makes no matter if price of gold is US$250 or US$2,500
as exchanging one nation's paper for another is based not
on the price of gold but it seems the random thoughts of
political leaders and Powers that Be.
gotmilk
Si's Doug AK
