RE:RE:Morningstar raises BitGold Quantitative Fair Value Estimaterdslick wrote:
Gold is up 30 dollars cdn in 2 weeks...going up in all the currencies around the world...keep buying gold in your countrys fiat..that is why I love Bitgold....dont care you else loves it or not.....it works for me...owning this stock and real gold makes me sleep at night....greece is the first domino...they called the lenders bluff....they lent money to the greeks with no collateral i.e. gold...now they will be forced to bail greece out again....if they dont all the other broke countries will the same deal....the dominos will start off slow and pick up speed...imho
In that statement is the reason why it makes no sense to back currency with a hundred % gold as collateral. People need a house or a car, why would they use gold. If they have to use gold as a hundred % collateral why would they bother. Five % gold collateral is about right when there is nothing else feasible to use as collateral. In the case of sovereign states they have nothing to put up except for their promise to trust me. Like I said the world is getting integrated now and that's just not going to work. Couple of phone calls to the right people would sort this mess out quick.