[Labyrinthos]

Think Germany 1922-23, Bolivia in 1983, Peru in the 80's or Iraq. A million Iraqui dinares are worth $900. When the real value of currency is inflated to worthlessness gold should retain its purchasing power.

I understand what you are saying, but I think you are living in a fantasy world. Unlike Nazi Germany, Bolivia, Peru, and Iraq, we have a strong and time-tested Federal Reserve and monetary system that has prevented the situation that you have described, perhaps in part, because our monetary system is no longer tied to gold. Also, where do you think you are going to be able to spend your gold? Walmart? Most of the people who work in retail sales these days, can't even make change without the help of a computer chip even though our base 10 monetary system is about as simple as one can get. I can see the situation now:

Cashier: "One roll of toilet paper, a carton of Marlboro's, and a case of 000 Buckshot, that will be $21,212.43.

Purchaser: "Do you take gold coins?"

Cashier: "Huh?"

Also, doesn't Federal Law currently prohibit the use of gold as currency?

[zek157]

I didn't say I subscribe. I only wanted to explain the basis behind the theory. I'm not saying there will be a monetary crisis similar to those nations. If there was bullets, beer and whiskey may be better to barter with for all I know.

For a better example of what happened here in the good ol USofA how much was gold when RMN pulled us off the gold standard in the early 70's. Gold price held up fairly well to the stagflation/inflation of 1975-81. I'm not pulling price comparisons out of myass for you. Look it up.