Gold- How Is Currency Related To It?

@ishan-nohePN • Oct 21, 2024

Oct 21, 2024

990

I read a news that RBI and especially Government is keen on providing customers with Loan on Gold. To verify it, I was searching for India's Gold imports on Google. I found some interesting facts. Some of them being-

1. India imports about (average) 700-800 tonnes of Pure Gold every year.
2. There is a sharp decline from the average this year on imports of Gold.
All I wanted to know is that, how is currency related to Gold?

Many say that more Gold a country has, higher is the value of its currency. If that is so, Indian rupee should be on the top, isn't it? So what is the mechanism of rating currency of a country based on Gold? What is Gold standard?

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Kaustubh Katdare

@thebigk • Dec 28, 2012

"Money is big fraud" - that should be the shortest answer to all the questions you've asked. I prefer to keep my mouth shut.

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ISHAN TOPRE

@ishan-nohePN • Dec 29, 2012

The_Big_K"Money is big fraud" - that should be the shortest answer to all the questions you've asked. I prefer to keep my mouth shut.
I still don't get it. Please explain the logic.

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Scorpion007

@scorpion007-Mj7x2o • Dec 30, 2012

may be below links will help you to understand the relation of gold and Currency
#-Link-Snipped-#
#-Link-Snipped-#

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Kaustubh Katdare

@thebigk • Dec 30, 2012

The gold standard no longer holds true. In fact, money is created out of thin air - by the banks. Imagine the world as 'banks' vs. 'people'. Bank gives you some money - say 100 bucks. You spend 50 and save 50 in the bank; with some interest. Now if the bank promises to give you 'interest', the bank is essentially generating money out of nowhere! Now, the economists will rush to tell me that a bank has finite reserves and it can't just give out money 'like that'. Explaining the whole thing is going to take lot of time. I wish I'll be able to summarise it in just few lines, some day.

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Abhishek Rawal

@abhishek-fg9tRh • Dec 30, 2012

I won't pop much because if I will talk about hidden society then someone will come forward criticising saying "#-Link-Snipped-# or or #-Link-Snipped-#", but I will summarise in few lines -

Money or Dead presidents or Green presidents have no relation with gold, currency is for "common-people", real wealth lies in "Oils","Coal","Monuments" & "Gold".

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Kaustubh Katdare

@thebigk • Dec 30, 2012

...you forgot 'dreams'. They sell more of those every day. In fact, every commodity is a 'free gift' with the 'dream' that you buy, right? [Ex. The toothpaste is given free of cost for buying the dream of shiny white teeth & great breath that lasts all day long].

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ISHAN TOPRE

@ishan-nohePN • Dec 30, 2012

Friends, I am only asking that how is currency of a particular nation valued and how it is related to Gold. Please stick to the topic.

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Ankita Katdare

@abrakadabra • Dec 31, 2012

One awesome question (thank you for bringing it up) - and loved all the replies here! 😀
I have been a follower of the Zeitgeist Video Series and I think you should really watch these two videos:

and

See if you dig out some answers in there. Also ask questions that pop-out because of that video.

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