Which country will be the first to use gold?

[xxjs]

Use gold as in private coinage, coins used in day to day trade, free exhange, free import and export.

Which country would use gold, if the dollar tanks?
Which country will use gold, when the dollar tanks?

My guesses:

1 India, since gold is already widely distributed amongst the population.

2 South africa, as they have gold mines and already have krugerrand as legal tender.

3 Australia, because they have lots of gold mines.

4 Argentina, because they have problems right now.

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[Stephen Gornick]

Which country would use gold

From another thread:

It took decades but finally the government of Kelantan (a state in Malaysia - They have a federal system like the USA) last year listened and introduced Gold and Silver currency which is legal tender in that state. They are even paying civil servants using it.

Another Malaysian state (Perak) has now introduced its own Gold Dinar and Silver Dirham coins. Kelantan was first, in August of 2010.

- http://constitutionaltender.blogspot.com/2011/03/another-state-in-malaysia-introduces.html

[Stephen Gornick]

1 India, since gold is already widely distributed amongst the population.

Also interesting are these plans from the RBI (India's central bank):

It wants banks to encourage products linked to accepting physical gold as deposits and investing public money in gold related products, and extend loans against gold as collateral.

Indians own about 20,000 tonnes of gold, or three times the holdings of the U.S. Federal Reserve, in jewellery, bars and coins.

- http://in.reuters.com/article/2013/02/01/gold-india-idINDEE91009U20130201

[Phinnaeus Gage]

1 India, since gold is already widely distributed amongst the population.

Also interesting are these plans from the RBI (India's central bank):

It wants banks to encourage products linked to accepting physical gold as deposits and investing public money in gold related products, and extend loans against gold as collateral.

Indians own about 20,000 tonnes of gold, or three times the holdings of the U.S. Federal Reserve, in jewellery, bars and coins.

- http://in.reuters.com/article/2013/02/01/gold-india-idINDEE91009U20130201

That equates to roughly $66,800,000,000. Divide that by 1B people and they'll have $66 each, and that's only if all the women in India surrender their gold jewelry. Highly unlikely one would, let alone half a billion plus of them.

I don't know how much the average woman in India has in gold, but my ex-wife owned about three pounds of the stuff in only the form of jewelry, and she was barely middle class. Here's an interesting read: https://docs.google.com/viewer?a=v&q=cache:FDcG1zORUdAJ:www.abwic.org/Proceedings/2007/ABW07-203.doc+&hl=en&gl=us&pid=bl&srcid=ADGEESjW4Wy8_96ct4frbuduvpcjHP7x8mGvchZxXu5DZRJ11ZxpTWxFxHFqopjodUea0G_OVQAZgx4wURNTRPYe78rn5JnVKqUYdXtKlZ6CQCNpZfTDLAxxgSFcvZ13A5M3F7Ev_sEq&sig=AHIEtbTH-KMv76FzqsZZ-eA20_c7x9BqjQ

BTW, I'm talking about my real ex-wife, and not Maria. Which reminds me. Where is my sweetheart?

[John (John K.)]

Which country would use gold

From another thread:

It took decades but finally the government of Kelantan (a state in Malaysia - They have a federal system like the USA) last year listened and introduced Gold and Silver currency which is legal tender in that state. They are even paying civil servants using it.

Another Malaysian state (Perak) has now introduced its own Gold Dinar and Silver Dirham coins. Kelantan was first, in August of 2010.

- http://constitutionaltender.blogspot.com/2011/03/another-state-in-malaysia-introduces.html

Yep, apparently the Islamic laws requires Gold and Silver as a form of 'zakat' and legal currency. The states above have a majority of Islamic civilians, and thus the proliferation of gold and silver.

[EndTheFed321]

but,but gold is not money  Uncle Ben told Senator Ron Paul!

[robamichael]

To use gold, first they will need to stack it!

Let's see who is doing that.

http://www.businessinsider.com/russia--turkey-ukraine-buy-gold-but-bullion-tiny-part-of-fx-reserves-2012-8

[aceking]

Germany wants its gold back too.
http://online.wsj.com/article/SB10001424127887323468604578245481704511870.html

[Vladimir]

At least 2 countries ARE already using gold as currency de facto.

1. Zimbabwe. Google "zimbabwe gold dust" for proof.
2. Vietnam. See  http://www.zerohedge.com/news/2013-02-04/guest-post-central-bank-snuffs-out-vietnam%E2%80%99s-thriving-gold-market

Interestingly, according to the zerohedge article Vietnam population holds 30 billion USD worth of gold. Should they replace this gold by Bitcoin it would make 1 BTC worth 3000$.

[franky1]

gold for daily to day trading?

i hope you don't mean to buy a pint of milk. because the size of a coin that has a value of a loaf of bread or a pint of milk is smaller then        .         <- that dot. for "private coinage" to use on daily bases.

[phelix]

Which country would use gold

From another thread:

It took decades but finally the government of Kelantan (a state in Malaysia - They have a federal system like the USA) last year listened and introduced Gold and Silver currency which is legal tender in that state. They are even paying civil servants using it.

Another Malaysian state (Perak) has now introduced its own Gold Dinar and Silver Dirham coins. Kelantan was first, in August of 2010.

- http://constitutionaltender.blogspot.com/2011/03/another-state-in-malaysia-introduces.html

Yep, apparently the Islamic laws requires Gold and Silver as a form of 'zakat' and legal currency. The states above have a majority of Islamic civilians, and thus the proliferation of gold and silver.

Have been to Malaysia last year and visited both Perak and Kelantan. Very nice. Did not see any gold coins, though.

[xxjs]

gold for daily to day trading?

i hope you don't mean to buy a pint of milk. because the size of a coin that has a value of a loaf of bread or a pint of milk is smaller then        .         <- that dot. for "private coinage" to use on daily bases.

I think there exists somewhere a plastic coin with a gold nugget cast in.

[Seth Otterstad]

Gold is a really bad form of money for everyday transactions, just better than any other commodity.  Representative forms of it are far superior.  Bitcoin crushes both gold and its representations as a form of money.

[CurbsideProphet]

Use gold as in private coinage, coins used in day to day trade, free exhange, free import and export.

I don't ever see this happening.  A return to the gold standard I can see but using physical gold as a medium of exchange isn't feasible on a a large scale.

[robamichael]

You don't need to trade the actual gold to have a currency based on gold (or silver or any other hard asset).

The alternative would be certificates that represent gold, and I don't mean the fractional reserve type that lead to bank runs either. I mean you have a right to the actual metal.

Peter Schiff has already started something like this, though it is not available in the USA.

http://www.youtube.com/watch?v=goI8rAAJKtE#t=9m33s

[CurbsideProphet]

You don't need to trade the actual gold to have a currency based on gold (or silver or any other hard asset).

The alternative would be certificates that represent gold, and I don't mean the fractional reserve type that lead to bank runs either. I mean you have a right to the actual metal.

Peter Schiff has already started something like this, though it is not available in the USA.

http://www.youtube.com/watch?v=goI8rAAJKtE#t=9m33s

I was responding to the OP.

Use gold as in private coinage, coins used in day to day trade, free exhange, free import and export.

I took this to mean the use of actual gold coins.

[Timep34]

Gaddafi planned to start an African currency backed by gold.

The international mega-banks couldn't let that happen now could they....

http://www.youtube.com/watch?feature=player_embedded&v=THlaMUq6MKU

[xxjs]

You don't need to trade the actual gold to have a currency based on gold (or silver or any other hard asset).

The alternative would be certificates that represent gold, and I don't mean the fractional reserve type that lead to bank runs either. I mean you have a right to the actual metal.

Peter Schiff has already started something like this, though it is not available in the USA.

http://www.youtube.com/watch?v=goI8rAAJKtE#t=9m33s

I was responding to the OP.

Use gold as in private coinage, coins used in day to day trade, free exhange, free import and export.

Yes I was thinking about using actual gold, except for smaller coins, because histori has shown that gold backing only lasts until it doesn't last any more.

Just speculating here, but I think it is possible, and it will be triggered by some fiat crisis.

I took this to mean the use of actual gold coins.

[hashman]

I'll guess Ur.  Or perhaps Lemuria.   

[stochastic]

You don't need to trade the actual gold to have a currency based on gold (or silver or any other hard asset).

The alternative would be certificates that represent gold, and I don't mean the fractional reserve type that lead to bank runs either. I mean you have a right to the actual metal.

Peter Schiff has already started something like this, though it is not available in the USA.

http://www.youtube.com/watch?v=goI8rAAJKtE#t=9m33s

The Liberty Dollar tried this and the founder is [going to be] sitting in federal prison because:

Attorney for the Western District of North Carolina, Anne M. Tompkins, described the Liberty Dollar as "a unique form of domestic terrorism" that is trying "to undermine the legitimate currency of this country".[28] The Justice Department press release quotes her as saying: "While these forms of anti-government activities do not involve violence, they are every bit as insidious and represent a clear and present danger to the economic stability of this country.