Bitcoin Forum

Most of the major nations already have gold and silver coins that are nominally legal tender. For example, the UK has the Sovereign and the Britannia. You probably wouldn't use a Britannia at its nominal value of £100, as it will cost you around £1,000 to buy one, but it could be used based on the value of it's gold content. As an interesting historic note, the dollar became the main currency in America because of the silver and gold coins which gave it legitimacy. It was originally a Spanish coin I believe.

It looks as if Russia has been buying gold and silver in preparation of the launch of gold and silver ruble coins. Obviously these would be useful for interntional trade. China is talking about gold backed crypto, and England already has the RMG. The future of currencies looks to be very interesting.

Some of the informaation in this post was gleaned from this video on YouTube.

https://www.youtube.com/watch?v=qOKO2q_zNbY

Why would they? World economics moved on from the gold standard, didnt it?

Yep, it's an interesting history and I know just a little bit about it--I definitely know that the USD used to be backed by gold, and that supposedly put a cap on the number of dollars that could be printed, and people wanted some intrinsic value with their money.  That was huge back in the day--read about the history of the Trade Dollar that the US government minted in the 1800s.  It's fascinating.

But today?  We absolutely don't need precious metals involved with our money, and I don't think they're going to make a comeback.  Yes, we had a mania in the 2000s when gold was shooting up to $2000/Oz and silver was headed toward $50, but that kick pretty much died in 2011 when metals started their downward spiral.  They have yet to recover from that, but there are still people around who bought a bunch of silver coins at $49 and are just waiting for metals to rebound. 

All of the articles by those bulls keep repeating the same arguments, that fiat always goes to zero, the Fed is printing unlimited dollars, that metals are the best hedge against inflation...blah blah blah.  Meanwhile, silver is stuck at $16 and bitcoin and the stock market have been on fire for years now.

So no, my opinion is that precious metals are definitely NOT going to return as regular currency.  No way in hell.

No. The future is digital now. Gold and silver are wholly outdated as currencies and are so impractical. In fact, I'd bet regular currency (coins and cash) will likely be extinct within our generation. Most transactions are already done with debit and credit cards and I think it's likely many governments in the developed world will gradually start phasing out physical currency at some point over the next decade or two. There's just too many negatives with physical currency. They cost a lot to produce and replace (as they damage easy), many can be fairly easily counterfeited, and criminals and tax evaders just use cash to avoid a paper trail and paying taxes. If all transactions went to debit cards or banking apps then all these problems are mostly solved (or at the very least severely curbed). I think this is one reason why crypto will always have a place  by existing outside of the mainstream and centralized systems.

Even large denomination notes are currently being suggested or discussed to be phased out by the UK, USA and EURO because they're favored by drug dealers/criminals and counterfeiters:

http://www.dailymail.co.uk/news/article-3437590/Banks-urged-ban-50-notes-bid-end-cash-hand-culture-help-recoup-billions-tax-Treasury.html



http://time.com/money/4226174/kill-100-dollar-bill-500-euro-phase-out/

It's only a matter of time before the rest follow suit.


Really? I wouldn't think so. Can you imagine lugging around ridiculously heavy cases full of gold around the world? I can only imagine all the attempted heists that would happen if this became the norm. The only thing useful for international trade are numbers on a screen right now.



Gold backed, but the actual physical coins won't be used in the actual transaction. You're essentially just being given a token as proof that you own the gold but all the gold is doing is sitting in a vault somewhere. Just seems a bit gimmicky to me though I suppose it makes owning gold a bit more easier.

And what happened to world debt right after.

There is a reason china and russia are accumulating gold & silver and ever increasing rates.  Sooner or later they will lauch precious metal backed currencies that will cripple the dollar.

Sales of Sovereigns, Britannias, Eagles, Maples, Krugerrands and the gold coins of other countries are being minted in increasing numbers. Silver versions of many of them have been introduced as well. I think they are getting ready to collapse the fiat currencies, Yes, there will be a crypto replacement, but I believe that precious metal coins will be used alongside the cryptos.

The circulation of gold and silver coin currency in the Philippines have been decreased.

A certain group of ppls in the Philippines are targeting a certain kind of currency that have an embedded ounce of gold or silver they are making it as a decoration or they are melting all the coins collected through the course of the month and make a new necklace/bracelet/ring/ made of gold/silver/copper.


And way back 200+ when the first 10 peso coin allegedly spread that those coins have an ounce of gold in the inner part of it a Chinese/Korean national had been caught smuggling a large volume of 2000 and 2001 peso coin. I can't give a link as I was only 12 years old when that happened I only saw it on the news relative information is not an assurance.
Years have passed they discovered that the news is only a hoaxed (https://www.topicsonearth.com/the-year-2001-ten-peso-coins).

I think the answer to this thread is no in the Philippines I know but in other country not sure of course.

more info
https://en.wikipedia.org/wiki/Philippine_ten_peso_coin

I don't see it that way. To be honest, me and my family has a business for buying and selling gold. The market become so low because the demand is not that high compared before. It's hard to buy gold now because they are expecting that the price should be high. The customer will end up pawning her gold instead of selling it to us.  By the way, gold and silver was used as currency when money was non existent. It will never go back that way.

I don't think that we will see people using gold Britannias in the supermarket, but we are seeing countries like China, Russia and Saudi trading oil for gold. Trump seems to be working with Russia and China to reduce the power of the Central Banks, and this will have a major impact on fiat currencies. Something will have to replace the collapsing fiat, and I believe it will be a mix of gold, silver, crypto, and possibly SDRs.

The gold and silver coin value is defined by the government , not by the gold itself . After all , it is  cash alike so that it is non-sense .

In the very past , gold coin value is defined by the gold value. Gold is regarded as important production material .

That's not completely true.The British Britannia has a value of £100 as a coin for legal tender, but the one off price from the Royal Mint is £986.04 today. The Shanghai gold exchange is quoting prices for physical gold.

I think still hard gold and silver coins as a currency, it's need regulation from the government and value of that coins.
Gold and silver people will treat as a assets. They can keep gold and silver and in the future they can sell again to earn some money.

Why would they want to collapse the fiat currencies that they already own and control the supply of? It costs time, money and resources to produce these coins compared to printing the digital money out of thin air for free that fiat is. These coins are likely only purchased as collectors items/potential investments as opposed to being used as actual currencies. The Royal Mail in the UK creates a new sovereign every year just out of tradition and they make a lot of money from them because the prices are well over spot. They also still produce postage stamps in fancy packaging every month for collectors which sell very well but many people don't actually even buy stamps any more to use on their mail where labels are just usually printed but snail mail is already dying out. Stamps are very archaic and currencies are going the same way but they will always have value to collectors and the like.

Governments don't own or control the fiat currencies, the Rothschilds do. This includes the Bank of England, Bank of Japan, and the US Federal Reserve amongst others. They are so debt laden, that they have no choice but to collapse the fiat currencies and the current banking system.

The use of paper money allows you to make economic regulation - the implementation of the inflationary model. This allows you to stimulate investment and cover part of the budget through inflation.

In my opinion, I don't think so.
Digital money is the future of all currencies in relative to now.
I do not see the point of turning back to it rather than just develop technology that is more convenient and secure compared to it - though it greatly has a lot of considerations to be put upon.

Yes, exactly what I thought.
Paper is more easily accessible than either of the minerals so why change back to it.

Most gold coins minted today eg krugers,sovereigns and maple leafs are aimed at collectors not to be used as currency.

They should return, but "cryptified", that is, deposited in an audited "vault" and represented as digital tokens that you could instantly send. True fully gold-backed crypto, instantly and privately transferable, no shitty FIAT inflated and deflated at will by Central Banks.

Again not completely true. Russia and China are trading oil for gold, and so are some other countries. I don't think gold coins will be used in the supermarket, but as traceable digital currencies become more dominant, gold can be used for private transactions if the items are valuable enough.

I think we have to differentiate between two aspects here:

1.) Will we go back to a system like Bretton Woods, i.e. a system in which currencies are tied to gold?
I don't think so, since I believe that governments would currently not be able to agree on such a big step, although it would arguably give us more stability. Moreover, the system, if not designed properly, could fail just like Bretton Woods, in which the US, during the Nixon shock, could not guarantee any longer that it would exchange USD for gold.

2.) Will we use gold and silver coins as currency?
Absolutely not! As has already been argued by several other users here the tendency goes towards abolishing the use of paper money and coins at all. The only situation in which we could see a return of precious metals as currency would be during a severe economic shock like a war or hyperinflation.

Or.... you ignore governments and their monolithic authority and use silver and gold backed tokens/coins. The good think about gold is that you don't need a central bank, because the value does not need backup.

Absolutely, that issue was present since they made 500 euro notes. I've never seen one, nor I will ever need it. However, I can think of use cases indeed.

I think what creates stability for fiat will do the same for cryptos. So if you back cryptos with gold this would create an obvious intrinsic value and make it more stable.

Gold and Silver coins couldn't provide current money flow in the world, it will just stop economic and its growth (which will lead to ruining almost every business spheres). I don't see any reasons if its use in modern world. They are totally archaic.

It is possible to use gold or other precious metals but it isn't very practical. Like any mode of trade you can use anything aslong as both parties are happy with the trade.
Once again it comes back to a store of value.

A cruise missile has 16 Kgs silver which gets destroyed when the missile is fired. For gold and Silver to be used as currency, Gold will be $5000/ounce and Silver $600/ounce because all their limited supply as compared to world economy. USA is $18,000,000,000,000/year economy.

World economy is around $150,000,000,000,000/year.

nope and nope also. If you make gold and silver move as crypto they can provide a huge trade base. The reason to use these is very clear: Governments mismanage the fiat coins at their will serving interests that are alien to the people.

In the past history they are using gold and silver coins to buy something,why should we go back in the currency that the world can provide advance  and state of the art currency like bitcoin or crypto currency?

You are talking about crypto supported by gold/silver, it is not the same thing.
Sure if crypto-currencies will be supported by real gold,silver, etc., it will just increase the public´s trust which will lead to globalization of crypto usage in entire world. In this case it makes sense, but to trade with real silver coins in your pocket is ridiculous!

If this is happening or going to happen worldwide, this could actually be exciting. Especially for those countries with gold and silver resources, it would be an advantage for them. Once gold and silver coins make a comeback, I hope everyone is prepared for it (if it happens)

Yes, I am talking about 21st century technology because that is what we have now. You see, highways would serve little purpose if you insist on using horses.