**Gold as a Monetary standard. As we see the decreasing yields of over spent markets beginning to decline, heads are turning towards Gold. **
The world had a round 33000 tonnes of Gold, and this is held by major countries, and the general public. The current world money supply is 24 Trillion, and the current value of Gold is around 1.5 Trillion dollars. For Gold to once again become the world Monetary standard, the value of Gold would have to increase to around $8000-$10000 per ounce, according Jim Rickards.
The potential for Gold price increase rises to over $40000 per ounce if all debt was to be backed by Gold.
Owning Gold is a store of value, and a way to have a degree of protection for times when the World financial system goes in decline. For me i like to own some Gold around 10% of my current asset portfolio, and i like to have that as physical real Gold that i can store and hold for myself. If the world financial markets do go into panic selling, the price of Gold is likely to increase sharply in value.
The subjective value of Gold is basically the price that people are willing to pay at a particular time. At this time the price of Gold is held down by Short selling in futures markets by major Banks. Russia and China have been buying massive amounts of Gold in recent years, and China now offers payments in Gold for international trade in Oil. China and Russia are playing a long term game, and they see that Gold will once again back the value of currency in coming years.
Many countries are beginning a war on cash, and this Includes India where nearly every note over $5 in value has been withdrawn from circulation. Some countries are heading quickly towards a cashless society, this is another reason to accumulate some Gold for personal protection in the future.
Gold has always kept pace with inflation, and holds up as a store a value over a period of years. In recent times we have had deflation, and Gold has held its value better than most currencies. My own view is that Gold is well worth owning, and should be held in Physical form.
Free use image from google