Arguments for and Against a Gold Backed Economy

Hoarded and traded for centuries, Gold has always been a coveted item. As of June 22, 2013, gold is about $1300 an ounce. This is a great time to be buying this valuable commodity. Since the price for gold is so good right now, this has renewed interest in using gold as currency.

There are rumors on the Internet about how the affluent have been buying up gold lately. In the event of a global collapse, people with gold would have more financial leverage. Others feel this would put poorer people at a disadvantage. A person that does not have gold would have a very limited command of the means of life.

Those who argue for Currency backed by gold say this would stabilize the monetary system. Countries would not be able to print currency without having gold to back it up. There were instances where some countries printed paper money even when there was nothing to secure the currency. A gold backed monetary system may help to eliminate this practice. Furthermore, gold backed currency would reduce the likelihood of inflation.

One way or the other, I feel something needs to be done. It seems that the world economic system is in serious trouble. Maybe a gold backed currency would help restore and repair the global economy.  Besides, it is a wonderful time to be investing in gold.