How Would A Gold Currency Actually Work?

INT21

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#1
This is aimed mainly at Mike Fule as it he seems to be pretty knowledgeable.

Assuming the paper money fails.

You have a gold ingot. 100 Gram. with a current value of £1000. (But the paper actually is worth nothing)

So you go into a shop and want £100 Pounds worth of groceries.

How do you pay ?

You would be relying on the shopkeeper giving you the balance back in gold.

i.e he has to give you 90 gramms of gold.

How will this work in practice.

And how will the echange rate be worked out. There has to be one.
 

James_H

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#2
I'm no expert but I'm fairly sure in the past they used to make them into smaller bits of gold, i.e. coins and the value basically correlated with the weight.
 

maximus otter

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#3
Don't buy gold ingots, buy gold wedding rings. They could be used to buy supplies, or clipped easily to "make change".

Big advantage? If civilisation falls over and you try to bribe the militia with a gold bar, you'll just get a knife held to your throat to induce you to part with the (presumed) others. No-one would suspect that you have more than one wedding ring.

maximus otter
 

AnonyJoolz

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#4
Don't buy gold ingots, buy gold wedding rings. They could be used to buy supplies, or clipped easily to "make change".

Big advantage? If civilisation falls over and you try to bribe the militia with a gold bar, you'll just get a knife held to your throat to induce you to part with the (presumed) others. No-one would suspect that you have more than one wedding ring.

maximus otter
This is one of the reasons that south Asians 'invest' quite heavily in gold jewellery, usually pure 24K stuff. Wearable, easily transferrable money if needed.
 

maximus otter

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#7
Some of the gold coins were designed to be broken into smaller pieces I believe.
“Pieces of eight are historical Spanish dollar coins minted in the Americas from the late 15th century through the 19th century. Made of silver, they were in nearly worldwide circulation by the late 19th century and were legal currency in the United States until 1857. The Spanish dollar coin was worth eight reales and could be physically cut into eight pieces, or "bits," to make change — hence the colloquial name "pieces of eight." The dollar coin could also be cut into quarters, and "two bits" became American slang for a quarter dollar, or 25 cents.”

https://www.wisegeek.com/what-are-pieces-of-eight.htm

maximus otter
 
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#8
Don't buy gold ingots, buy gold wedding rings. They could be used to buy supplies, or clipped easily to "make change".

Big advantage? If civilisation falls over and you try to bribe the militia with a gold bar, you'll just get a knife held to your throat to induce you to part with the (presumed) others. No-one would suspect that you have more than one wedding ring.

maximus otter
One gold ring = a deer fillet?
 

maximus otter

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#9
One gold ring = a deer fillet?
Five gold rings
Four calling birds
Three French hens
Two turtle doves, and a
Partridge in a pear tree.

PayPal or bank transfer. Ts & Cs apply. Past results are not a guarantee of future performance. Only one per customer. If not entirely satisfied, you have been had
.”

maximus otter
 

cycleboy2

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#10
I amuse/bemuse people by telling them that I paid for my share of the honeymoon selling some of my gold sovereigns. Started buying them at £58 each, sold five of them for £240 each in 2011. Result! My savings are mainly in a bank account but I still have gold sovereigns and half-sovereigns – it's the collector in me. They're a lovely, classic design too.
 
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