Gold Price Monitor Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor

GDXJ 108.88

+4.2%

4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Wizzer who wrote (11217)	5/4/1998 11:32:00 PM
From: Abner Hosmer	Read Replies (1) of 116801

Wisam - I may have this wrong, so I hope others will jump in and help out in case I am mistaken. The way I understand it, a currency that is "backed" by gold is one that is theoretically convertible into gold at some fixed amount, so that if a currency was 30% backed by gold, this would imply existing gold reserves with a value equal to 30% of the of the total value of currency in circulation. Unless I am incorrect, the Swiss Franc is about the only example of this still around, being by law 40% backed by gold, which has been assigned a reserve value for this purpose comfortably beneath the current market price of bullion. On the other hand, if a country has a reserve base equal to 10% of currency in circulation, and 30% of those reserves are retained in gold, the the theoretical backing is actually around 3%. Tom

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next