/biz/ - Business & Finance

>>56879276
>I think the GSR was fixed at what, 1:16 by the gov prior to 1974?
It's been like this ever since we invented monies. From Sumer and Athens up to the LMU, G:S ratio always hovered between 13 and 16 for over 2500 years, so a good middle ground would be the greek 1:14.
The modern 1:80-85 is fucking bullshit, we mine at 1:8 ffs, lowest the ratio has ever been. It's just an unilateral decision made by central banksters because gold is all they stack.

If they prefered gold over silver it's not simply for practical reasons (less voluminous), silver wouldn't be much more voluminous if it was x20 the current price, but mostly because they didn't want to compete with industrials over the acquisition of PMs. Eventually it would have had a negative impact on nations' productivity concerning essential goods. At least with gold they mostly have to compete with jewelers.