debtacid

The Case for Gold Today

If gold was re-monetized today, how much would it be?

I know this is a massive over simplification but still fun:

Given the $12 trillion fiat dollar supply today, the U.S. price of gold should be $46,875 an ounce.

The biggest gold bug, the U.S. Treasury, is hoarding 8,000 tons of gold which adds up to 256 million ounces.

12 trillion divided by 256 million = $46,875.

Given that the dollar is the world's reserve currency, world gold should be $12,500 an ounce.

The world gold reserves are 960 million ounces.

12 trillion divided by 960 million = $12,500.

I'd rather be a gold bug than a fiat fool. Fiat currencies always fail spectacularly and suddenly.