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Gold is almost worthless but people just don't want to accept that because governments still use it as a form of currency. Credit rating agencies are using gol
by thefounder 7y ago
Gold is almost worthless but people just don't want to accept that because governments still use it as a form of currency.
Credit rating agencies are using gold reserves(among other things) so this could be a reason
- gerikson 7y agoThis is the second time today I’ve seen someone say that governments use good as a currency. What governments do this?
- thefounder 7y agoUsually countries without access to financial markets(i.e Syria, Iran, Venezuela). The credit rating of countries is based on their gold reserves as well so if you have gold you get cheaper loans. https://en.m.wikipedia.org/wiki/Gold_reserve https://en.m.wikipedia.org/wiki/Gold_reserve
- gerikson 7y ago[I now see I mispelled "gold" as "good" in my comment, my bad] As far as I know, none of those countries promises to redeem bearers of banknotes with an equivalent value in gold, which is what being on a gold standard means[1]. Plenty of central banks have gold reserves, that's basically a vestige from the past, but that's not the same as saying the currency is backed by gold. https://en.wikipedia.org/wiki/Gold_standard https://en.wikipedia.org/wiki/Gold_standard