Quote:
Originally Posted by $5 submissions
You have a point there. It's a form of FORCED VALUE. Gold, on the other hand, is market-determined. Hard to corner that market. See the Hunt brothers' sad experience with silver.
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Yes and no. Gold and the gold standard prevents excessive printing of money, because there is a limited supply of gold. But as long as the concept of "legal tender" is in place, as long as you allow the government to determine what is to be considered "money", you will always have a problem. As long as that government determines what is money, the government forces you to use/accept a certain product/item/commodity as a form of payment. And as long as there is an element of force involved, there cannot be a "market-determined value" of your money/gold.
btw: the gold market was very easily cornered. Just look at what happened after the demonetization of silver in 1873.