What Should be a Fair Price for Gold Today?
As we saw in the first chart that Roosevelt prohibited domestic gold ownership and raise the price of one ounce of gold from $20 in Federal Reserve Notes to $35 in Federal Reserve Notes to bring the system into a favorable balance in 1934. A question occurs to me. What if the United States once again saw gold as money in its best interest, and resolved to take steps to reintroduce the pre Federal Reserve Gold Standard. How many dollars would they have to raise the official gold price to fully back the American dollars now in circulation with its gold reserves? As a gold standard demands that anyone holding a paper US dollar note could take their paper dollar note to any bank and demand exchange of their paper dollars for gold dollars, we need to know how many paper dollars are outstanding (Currency in Circulation) and how many dollars, not ounces, of gold the US Government has to redeem this paper with. In other words, the number of paper dollars, must equal the number of gold dollars
