What if gold was to become worthless?

[Safestacker]

I pose a question ....

Where does the gold price and worth come from? (Also silver)

Considering this, what if the government or powers that be declared gold/silver worthless and stopped using it to back money but rather put all their backing into fiat or digital cashless currency moving forward? Would dealers then stop buying and selling? Because essentially it’s worthless. Would this then make all of our gold stacks worthless? it can be manipulated to go up and down so surely it can be manipulated into being worth nothing if they chose to?

Also, following this, they make barter illegal and so no dealers would be able to buy and sell gold ? 

[Guybrush]

As with anything made illegal a black market pops up.  Gold/Silver would be illegal but there would be a black market exchange rate.  Dealers would have to shut down because the black market would be where the trade is done.

[JunkBond]

20 minutes ago, Safestacker said:

stopped using it to back money

This happened  in 1971

[Stu]

The powers that be could in theory knock the price to zero, however people, particularly from Asia know instinctively that it has value and would Hoover it all up as the price decreased, to the stage that no physical would be available to purchase . The problems central banks currently have.

[HawkHybrid]

54 minutes ago, Safestacker said:

I pose a question ....

Where does the gold price and worth come from? (Also silver)

Considering this, what if the government or powers that be declared gold/silver worthless and stopped using it to back money but rather put all their backing into fiat or digital cashless currency moving forward? Would dealers then stop buying and selling? Because essentially it’s worthless. Would this then make all of our gold stacks worthless? it can be manipulated to go up and down so surely it can be manipulated into being worth nothing if they chose to?

Also, following this, they make barter illegal and so no dealers would be able to buy and sell gold ? 

 

manipulation doesn't work like that.

https://www.youtube.com/watch?v=DnVjSJ88BHM

 

gold doesn't work like that.

people don't hold gold as a risk asset.

would you argue that oil can be manipulated

be worthless?

 

you need to go easy on the conspiracy theories.

 

HH

[Safestacker]

4 minutes ago, Stu said:

The powers that be could in theory knock the price to zero, however people, particularly from Asia know instinctively that it has value and would Hoover it all up as the price decreased, to the stage that no physical would be available to purchase . The problems central banks currently have.

Does anyone see this happening? As eventually when we go cashless they will want ultimate control over all of us and the next step would be to take away any possibility of wealth that they don’t control. 

[mr-dead]

33 minutes ago, Safestacker said:

I pose a question ....

Where does the gold price and worth come from? (Also silver)

Considering this, what if the government or powers that be declared gold/silver worthless and stopped using it to back money but rather put all their backing into fiat or digital cashless currency moving forward? Would dealers then stop buying and selling? Because essentially it’s worthless. Would this then make all of our gold stacks worthless? it can be manipulated to go up and down so surely it can be manipulated into being worth nothing if they chose to?

Also, following this, they make barter illegal and so no dealers would be able to buy and sell gold ? 

For a few thousand years gold has always had value, during that time how many currencies fiat or otherwise have retained worth?

The government does not have any power to declare something worthless.

 

 

[platinreloaded]

33 minutes ago, Safestacker said:

Also, following this, they make barter illegal and so no dealers would be able to buy and sell gold ? 

That is called " MISSION  IMPOSSIBEL " ! 

No government could do this because people would take their gold to save places and black market prices would go up to heaven.

 

[Stu]

I think a black market, barter type system would develop, or at least I hope so. 

[Safestacker]

7 minutes ago, HawkHybrid said:

 

manipulation doesn't work like that.

https://www.youtube.com/watch?v=DnVjSJ88BHM

 

gold doesn't work like that.

people don't hold gold as a risk asset.

would you argue that oil can be manipulated

be worthless?

 

you need to easy on the conspiracy theories.

 

HH

It can’t be labelled a conspiracy theory - the government do all sorts of shady illegal sh** and no one wonders whether they can make something entirely worthless ? 

[Safestacker]

6 minutes ago, HawkHybrid said:

 

manipulation doesn't work like that.

https://www.youtube.com/watch?v=DnVjSJ88BHM

 

gold doesn't work like that.

people don't hold gold as a risk asset.

would you argue that oil can be manipulated

be worthless?

 

you need to easy on the conspiracy theories.

 

HH

If we didn’t need oil anymore as a fuel etc then yes - worthless. 

[HawkHybrid]

22 minutes ago, Safestacker said:

It can’t be labelled a conspiracy theory - the government do all sorts of shady illegal terrible and no one wonders whether they can make something entirely worthless ? 

 

it's a conspiracy theory due to a lack of

understanding. what you are suggesting is

impossible.

can oil be manipulated to be worthless?

then why can gold be manipulated to be

worthless?

 

precious metal pumpers use manipulation as

a defence against angry people who followed

their conspiracy theories and bought into the

metals.(angry people who lost money for years)

 

HH

[HawkHybrid]

10 minutes ago, Safestacker said:

If we didn’t need oil anymore as a fuel etc then yes - worthless. 

 

oil can always be used as a source of energy.

the inability to price something has no bearing

on it's usefulness. useful things can never be

worthless.

you're being completely unrealistic?

 

HH

[Safestacker]

Interesting replies. That’s why I posed this as a question - to see what people’s views on it were. I have no standing either way. 

[mr-dead]

24 minutes ago, Safestacker said:

If we didn’t need oil anymore as a fuel etc then yes - worthless. 

Not really

[ram64]

Does this scenario imply one country's Government declare's precious metals worthless? If this is the case, then there would be no issue for anyone outside said country, or rather it would be very convenient for everyone outside (either having the possibility to buy ultra low or sell very high on black markets). 

If the scenario implies all the world Governments decide so, then that's a bit implausible. At least one country would go against it and profit from the spoils. 

It's a bit of a complex subject, but I don't see either being very plausible as both gold and silver have a multitude of applications (industrial or otherwise).

[Zhorro]

I suppose that if a gold mine was found with unlimited amounts of gold, this would have the potential to make gold worthless (or just worth a fraction of its current value).  But would we be told?  Or would the price just be managed to gradually go down over time? 

[Gildeon]

It's all about supply and demand. So the government would have to make it worthless, starting by giving away it's supplies. I am sure that many would run to grab those! 😁

[RoughDog]

It would be worse than the black friday fight for the cheap large lcd tv.

[Abyss]

Empires risen and fallen but one thing stayed consistent throughout all this time 1 oz Gold remained as valuable as 1 oz Gold. I wanted to save for the next 20 years I would choose to save in Gold rather than £ $ Yen Euros.

[DarkChameleon]

2 hours ago, Safestacker said:

I pose a question ....

Where does the gold price and worth come from? (Also silver)

Considering this, what if the government or powers that be declared gold/silver worthless and stopped using it to back money but rather put all their backing into fiat or digital cashless currency moving forward? Would dealers then stop buying and selling? Because essentially it’s worthless. Would this then make all of our gold stacks worthless? it can be manipulated to go up and down so surely it can be manipulated into being worth nothing if they chose to?

Also, following this, they make barter illegal and so no dealers would be able to buy and sell gold ? 

You mean like they did with alcohol in america....and then came along al capone etc.

[DarkChameleon]

2 hours ago, Safestacker said:

Does anyone see this happening? As eventually when we go cashless they will want ultimate control over all of us and the next step would be to take away any possibility of wealth that they don’t control. 

They'e trying that with cryptos.

[ittle5huggy]

3 hours ago, Safestacker said:

I pose a question ....

Where does the gold price and worth come from? (Also silver)

Considering this, what if the government or powers that be declared gold/silver worthless and stopped using it to back money but rather put all their backing into fiat or digital cashless currency moving forward? Would dealers then stop buying and selling? Because essentially it’s worthless. Would this then make all of our gold stacks worthless? it can be manipulated to go up and down so surely it can be manipulated into being worth nothing if they chose to?

Also, following this, they make barter illegal and so no dealers would be able to buy and sell gol

Forgive me... but if I'm not mistaken @JunkBond has it correct

1971

 

No country currently backs its currency with gold, but many have in the past, including the U.S.; for half a century beginning in 1879, Americans could trade in $20.67 for an ounce of gold. The country effectively abandoned the gold standard in 1933, and completely severed the link between the dollar and gold in 1971.

 

  source = mentalfloss.com › article › why-did-us-abandon-gold-standard

PM's are purely a store for wealth and or a hedge against potentially volatility in the markets.... not forgetting the fact that they are shiny and some designs could be put in the Louvre 😀  

[ittle5huggy]

And the Big reason this would never happen ETF's.... abandon gold and silver ... watch the world go into a major meltdown financially.... i.e. a near extinction event then when no FIAT available use yer gold to buy a Gun .... this is not serious advice or comment but tongue in cheek   🤣

[RoughDog]

 ET, the dude with the magic glowing finger?