Originally Posted by peacepipe
But when the value drops to say 200 dollars an ounce,what then? This country isn't going back to the gold standard nor is the dollar going to become useless.
No? Look at the chart. Look up to 1913, the creation of the Federal Reserve Bank, and watch your purchasing power decrease. Go to 1970, one year before we were taken off the the gold standard, and watch how much more purchase power you had before.
Now tell me how the dollar is not going to be worthless. According to charts it lost 95% of its value since 1913.
Since 1971 when Nixon took us off the gold standard an oz of gold was worth $40.62. At the end of 2011 gold was $1,571.52 an oz. From 1912 to 1971 the average price of gold was around $30 an oz.
Do you notice how the value of the dollar has changed for the worse? Do you see the correlation between the value of your dollar and the price of gold?