Suddenly There Is Enough Gold

The world's gold reserves have recently increased in value to approximately $25 trillion, a significant rise from less than $10 trillion a decade ago, making a return to a gold standard feasible. The primary argument for abandoning the gold standard in 1971 was the perceived scarcity of gold, with fears that countries like the United States could "run out" if pressured for redemptions at a fixed price. This concern, however, was based on flawed reasoning, as gold is a deep and liquid market, and currency issuers can always purchase it on the open market. Despite the economic turmoil of the 1970s, including high inflation and recession, monetary officials largely claimed success in managing the transition away from gold. The article suggests that the real issue was not the quantity of gold, but rather the demand for it, which is influe... download the app to read more