alwillis on July 16, 2015 | parent | context | favorite | on: Bitcoin Trends in the First Half of 2015
>The USA golds 8000 tons of gold in Fort Knox (and in NYC’s Federal Reserve building). Why? Why does it do this? It must cost a lot to hold all that gold. The reason it does is because that gold implicitly (but not explicitly) backs the US dollar. If the dollar began crashing tomorrow, Obama could go on TV and say he was opening the vaults of Fort Knox and would exchange dollars for gold.
Seriously? Those 8000 tons of gold, priced at today’s price of 1144.45 as of a few minutes ago, have a value of $296,002,697,361.7893—a little under $300 billion. Sorry, but $300 billion just isn’t a lot of money in the grand scheme of things.
So today the $2,042 price per oz, is almost double the price in July of 2015.
So the dollar is likely worth 1/2 of what it was in 2015.
That seems about right.