Just wondering since the USD is no longer backed by gold is this the same for all the worlds currencies or are some still redeemable with gold? My friend said the euro is backed by gold. Is this true?

I don't think any major currency is backed by gold anymore.

If so how could the USD crash if all the other major currencies are worth just the same. Nothing!!!

The currencies are basically just backed by the economic strength of the issuing governments and the ability of their central banks to protect and defend the currency. Even though you can't turn in a Federal Reserve Note for gold or silver like you could older paper currency, the Federal Reserve System still has vast gold, silver, and foreign currency reserves they can sell for dollars to defend the currency if it is dropping precipitously. They can also raise interest rates to attract more foreigners to invest in dollars.

[edit on 8/25/2006 by djohnsto77]

Originally posted by ajh91
If so how could the USD crash if all the other major currencies are worth just the same. Nothing!!!

If your USD cash is worth nothing, you could give it to me .

Seriously, what's the inherent value of gold? It's just a inherently useless (i.e., no use vale), shiny, tarnish-proof rock to which people have happened to attach psychological value. Same with dollars, yen, pounds, or Euros... they're inherently useless (i.e., no use value), colorful, water-proof pieces of paper to which people attach psychological value. In (mainstream) economics, psychological tastes and preferences are the basis for all values/prices.

originally posted by abritraryguy

If your USD cash is worth nothing, you could give it to me .

Seriously, what's the inherent value of gold? It's just a inherently useless (i.e., no use vale), shiny, tarnish-proof rock to which people have happened to attach psychological value. Same with dollars, yen, pounds, or Euros... they're inherently useless (i.e., no use value), colorful, water-proof pieces of paper to which people attach psychological value. In (mainstream) economics, psychological tastes and preferences are the basis for all values/prices.

Ok you can have it but since i'm not an american you probably won't get a very good deal.

Anyway that's what the ancient romans thought. They started mixing gold with other metals. The people found out and next thing you know rome has fallen. If we don't learn from history it wil repeat itself.

Or you could go buy how much money it takes to buy a troy ounce of gold/silver

In $USD that would be $620/$12.33

Thats why I own a small amount of silver bullion Just in case [edit] happens.

Originally posted by ArbitraryGuy

Originally posted by ajh91
If so how could the USD crash if all the other major currencies are worth just the same. Nothing!!!

If your USD cash is worth nothing, you could give it to me .

Seriously, what's the inherent value of gold? It's just a inherently useless (i.e., no use vale), shiny, tarnish-proof rock to which people have happened to attach psychological value. Same with dollars, yen, pounds, or Euros... they're inherently useless (i.e., no use value), colorful, water-proof pieces of paper to which people attach psychological value. In (mainstream) economics, psychological tastes and preferences are the basis for all values/prices.

You are correct, sir. The fact is we have all been brainwashed into believing that these things have value and that is exactly how average people have been exploited for so long. Once that falsehood is engrained into our psyche, it snowballs to affect the people who come after us. The world is a big lie for the most part, and the majority of people either don't realize it or simply don't care.

[edit on 25-8-2006 by BennyHill]

Gold has real value because it takes real effort to extract from the earth.

It takes almost no effort to print billions of dollars, but to extract billions of dollars worth of Gold takes considerable effort and thus it is given real value by real human effort.

Originally posted by Stratrf_Rus
Gold has real value because it takes real effort to extract from the earth.

It takes almost no effort to print billions of dollars, but to extract billions of dollars worth of Gold takes considerable effort and thus it is given real value by real human effort.

It takes real value to dig up sand from the bottom of the ocean, but that's not worth the same as gold. It takes real effort to dig up aggregate for cement, but aggregate doesn't have the same value as gold.

The labor theory of value does not apply here. Gold's value is determined psychologically, just as the value of paper money. People psychologically value gold such that they're willing to exchange it for a certain amount of dollars whose value is also psychologically set. This is what sets the price of gold, pure and simple. If people didn't psychologically value gold, it'd be worthless.

Originally posted by ArbitraryGuy

Originally posted by Stratrf_Rus
Gold has real value because it takes real effort to extract from the earth.

It takes almost no effort to print billions of dollars, but to extract billions of dollars worth of Gold takes considerable effort and thus it is given real value by real human effort.

It takes real value to dig up sand from the bottom of the ocean, but that's not worth the same as gold. It takes real effort to dig up aggregate for cement, but aggregate doesn't have the same value as gold.

The labor theory of value does not apply here. Gold's value is determined psychologically, just as the value of paper money. People psychologically value gold such that they're willing to exchange it for a certain amount of dollars whose value is also psychologically set. This is what sets the price of gold, pure and simple. If people didn't psychologically value gold, it'd be worthless.

This is not correct. Gold as with any commodity's price is set by demand. People want and need Gold, it costs a lot to extract it (a lot more than aggregate) and so therefore it has REAL value. Something a person will accept in payment or use for its self...

Fiat money has no real value because you can't use it for anything and it doesn't take much to make.

Originally posted by Stratrf_Rus
This is not correct.

I beg to differ...

Originally posted by Stratrf_Rus
Gold as with any commodity's price is set by demand.

Yup, that's my point. Demand is determined by tastes and preferences, which are psychological. Thus, Gold's price has nothing to do with the labor embodied in its extraction. In the end, its value (price) is set by psychological preferences.

Originally posted by Stratrf_Rus
People want and need Gold,

Again, psychological preferences setting demand...

Originally posted by Stratrf_Rus
it costs a lot to extract it (a lot more than aggregate) and so therefore it has REAL value.

This contradicts with what you've already said, unless you're about to argue that prices don't equal values (which makes no sense).

You're also impying that the gold easily picked out of the streams of California in 1849 had less value because it was easier to mine. Doesn't make sense.

Originally posted by Stratrf_Rus
Something a person will accept in payment or use for its self...

Gold has had historically no inherent use value, just like any other historical commodity money or fiat money.

Originally posted by Stratrf_Rus
Fiat money has no real value because you can't use it for anything and it doesn't take much to make.

Again, gold has no use value either. If your fiat money has no real value, you can send it over to me.

[edit on 28-8-2006 by ArbitraryGuy]

Actually Gold has plenty of uses especially in the Medical field.

Again, gold has no use value either. If your fiat money has no real value, you can send it over to me.

Actually, you are grossly incorrect. Gold has many potential uses from Medicine to Electronics. It doesn't tarnish, it's an excellant conductor, and is very malleable. Some have even suggested that gold nanowires may be able to superconduct at a higher then usual temperature. It's a shame that it's wasted on frivolous stuff like jewlerly and backing currency(or provinding a last ditch option in some cases).

Sheesh, learn a lil chemistry please!?!

[edit on 29-8-2006 by sardion2000]

Originally posted by sardion2000

Again, gold has no use value either. If your fiat money has no real value, you can send it over to me.

Actually, you are grossly incorrect. Gold has many potential uses from Medicine to Electronics. It doesn't tarnish, it's an excellant conductor, and is very malleable. Some have even suggested that gold nanowires may be able to superconduct at a higher then usual temperature. It's a shame that it's wasted on frivolous stuff like jewlerly and backing currency(or provinding a last ditch option in some cases).

Sheesh, learn a lil chemistry please!?!

[edit on 29-8-2006 by sardion2000]

Sheesh, no need to be condescending or assume that I don't know what I'm talking about.

Historically gold has had no use value... as I said in my sentence before the one you quoted (sorry, I should be more explicit from sentance to sentance). How many of those uses for gold existed when gold was used as commodity money? Historical use value is key because we're comparing when gold was used as a commodity money to current fiat money.

My point was that gold was adopted (historically) as a commodity money because (historically) it has had no use value (can't use it to make tools, weapons, etc... nothing much beyond decoration). Because of this, people decided to use gold as a store of wealth and means for transaction. Thus, just like fiat money today, when gold was used as a commodity money it had no use value (no superconductors, medical applications, etc). My point is not that gold has no applications today (indeed this has nothing to do with the crux of what I'm trying to drive at).

[edit on 29-8-2006 by ArbitraryGuy]

! Can anyone actually answer the questions "Are any currencies backed by gold"? Is the euro backed by gold? Thanks.

Deny Ignorance.

I think the Euro is backed by 15% gold. The swiss franc used to be backed by 70% gold. Until the U.S. loses its backing as world reserve currency to purchase oil, it's still a good deal. How ever when Venezuala, Iran, Russia, & friends stop selling oil for green backs, GET OUT FAST! All you'll have is toilet paper. Cottony soft though.

Silver seems to be a very good thing to buy nowadays. It is for one rarer than gold, is better at conducting electricity, etc....

Silver is not rarer than Gold, where'd you hear that crap?