By analyzing some of the news and arguments that emerged on the surface in the past months, a new – or rather an old – monetary system is being tossed on the table: Gold Standard, after some adjustments to the old system to get out of the current economic crisis.
The fastest developing countries who are looking to have the first place on the world’s economy are buying physical gold massively; India, China and UAE. Russian economists argued against the current Quantitative Easiness policy the U.S. adopts to recover from their recession, advocating gold as money, not a simple commodity, and recommends returning to the gold standard to end currency wars.
A buzz in the U.S. economic community rose about the advantages of the gold standard in the current situation. While the internet was flowing with news and comments about the U.S. current economic policies, the U.S. government continued their economic policies just to support the USD that weakened after the military moved to Afghanistan and Iraq.
Fear from the inflation rates skyrocketing are true if the gold standard is back, but then, commodities will have a true value and gold’s role will be the hedge, not the fiat money.
The state of Arizona was the first to take a step in the U.S.; the state Senate approved a bill that recognize gold and silver as a currency, and waiting for the Governor’s signature to be in effect by 2014. Moreover, gold coins sales reached historical levels. These steps show how the public are angry with the government economic policies and seeking financial sanctuary. On the other hand, other countries are expanding their gold stocked in vaults, Russia, India and the Middle-east.
If there is a meaning to all this, it might be that the world is changing their views and looking at gold from a new perspective.