If There Was a Global Gold Standard: $37,000/oz. Gold Price

321gold  ( Original )
MAR 20, 2018

In a fiat world flooded with fiat currencies, what would gold be worth if all governmental global debt were backstopped by gold? What if in the US you could still redeem green ink on white paper for yellow metal?

Gold would be worth $37,000 per ounce.

One way of calculating an estimated value of the current gold price would be to look at the total debt in the world because all money is a debt from the central banks/treasuries.

According to the GFMS the total amount of gold is approximately 193,000 tons, or 6.2bn ounces. Global debt is estimated to be approx. $230trn an increase of $80trn (+53%) since 2008.

The global debt is about 3 times global GDP of approximately $80 trillion. If we take the global debt number $230trn and divide that by the total number of gold ounces in the world we would arrive at a gold price of $230,000bn: 6.2bn = $37,000/oz.

ORIGINAL SOURCE: The recycling of the US dollars financing the US deficits is going to end (Part 1) by Gijsbert Groenewegen at 321gold on 3/16/18