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The central bank in the U.S.—the Federal Reserve—has recently released a memo to possibly change the status of gold bullion in this country. (Source: Federal Deposit Insurance Corporation, June 18, 2012.)
Currently in the U.S. and in many parts of the world, gold bullion is classified as a risk asset on which banks are allowed a 50% weighting. This means that for every $1.00 of gold bullion held, $0.50 worth is recognized as value on the books of the banks or central banks. The whole $1.00 is not recognized, because there is a risk, according to the classification, that gold bullion cou
The cube of gold will produce nothing in the next hundred years (or, for that matter, thousands of years).
The cube of gold will not pay you interest or dividends, and it won't grow earnings.
You can fondle the cube, but it won't respond.
Originally posted by Blaine91555
reply to post by stirling
The Gold Standard is not a possibility and it was dumb from the start. I think this is about the value of Gold being more stable now.
Basing a countries worth on how much Gold it happens to have would be probably one of the dumbest moves in history. It's bad enough it was attempted in the past.
Originally posted by rickymouse
Well, that's kind of stupid. Put gold at zero risk. That means if everyone puts their faith in gold, the people who control the prices of gold have complete control of the world economy. They could cause the price of gold to collapse and there would be no real tangible security on the books of all the worlds banks. This could destroy a lot of economies. This is just speculation of something that could occur.