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Gold Standard Returns On January 1, 2013: Banks Have Already Adopted New Rules

from BeforeItsNews

On January 1, 2013, the world will return to a gold standard.

This isn’t guesswork. Banks in major economies across the globe have already adopted the rules.

In anticipation, central banks have been buying gold in large quantities. Turkey added 3.9 million ounces in the last year. Mexico has purchased 3.2 million ounces. Russia’s reserves stand at 29.2 million ounces — the highest in 20 years.

As they prepare for gold to become currency once again, the price of the yellow metal will continue to climb…

Insiders are forecasting gold to rise to between $10,000 and $14,000 per ounce.

The gold standard is a monetary system in which the standard economic unit of account is a fixed weight of gold. There are distinct kinds of gold standard. First, the gold specie standard is a system in which the monetary unit is associated with circulating gold coins, or with the unit of value defined in terms of one particular circulating gold coin in conjunction with subsidiary coinage made from a less valuable metal.

Similarly, the gold exchange standard typically does not involve the circulation of gold coins, instead using notes or coins made of silver or other metals, but where the authorities guarantee a fixed exchange rate with another country that is on the gold standard. This creates a de facto gold standard, in that the value of the silver coins has a fixed external value in terms of gold that is independent of the inherent silver value. Finally, the gold bullion standard is a system in which gold coins do not circulate, but in which the authorities have agreed to sell gold bullion on demand at a fixed price in exchange for the circulating currency.

No country currently uses the gold standard as the basis of its monetary system, although several hold substantial gold reserve.