Is It Time for a Gold Standard Revival?
Source: MarketWatch, Myra Saefong (8/15/11)
"'If people lose faith in a nation's paper currency, the money will no longer hold value.'"
Today marks the 40-year anniversary of the day the U.S. stopped fixing the value of its currency in gold terms—an important milestone as countries around the world worry about the risk of an international monetary crisis.
The so-called "gold standard" was a "system under which nearly all countries fixed the value of their currencies in terms of a specified amount of gold, or linked their currency to that of a country which did so," according to the World Gold Council.
"Today's fiat money is not linked to physical reserves of gold and silver, it is becoming worth less with each passing month and risks becoming worthless should hyperinflation take hold," analysts at GoldCore said in a note. "If people lose faith in a nation's paper currency, the money will no longer hold value." . . .View Full Article