Returning To A Gold & Silver Monetary System
The level of global money supply has boomed during the 50+ years since going totally fiat. That in itself doesn’t mean a return to gold and silver is unworkable. It is estimated that only 10 percent or so of the global money supply is in the form of currency in circulation with the remaining 90% being digital balances in accounts. That allows for the bulk(approx. 90%) of global money supply being backed by gold. This would largely be made up of the accounts of banks, central banks, sovreigns, corporations and large institutions etc. The remaining 10% backing for all the outstanding physical currency in circulation would be backed by silver. While that doesn’t preclude larger transactions from using gold, most transactions particularly at the retail level, would be conducted using silver.(much as throughout history,using silver coins) The biggest problem to overcome, is that given the shortage of silver brought about by 60 years of price suppression and growing industrial demand from all the newer electronic products that use it, the price of silver needs to rise exponentially to catch up to it’s real value and relect all the inflation that has occurred over 60 years. That is why future silver coins are likely to contain very small increments of say 1/20th of an ounce, 1/10th of an ounce and 1/4th of an ounce of silver. At $200 per ounce silver(just as an example) that would compare to a ten dollar bill, twenty dollar bill, or fifty dollar bill currently.
Never happening.