$7000? How does he arrive at that figure? My own best guess is somewhere north of $20,000/oz. That takes into account most of the dollars that are out there (I think), but it's also the reason I don't think we'll ever return to the kind of gold standard we had pre-1933. It would be like the Mexican peso when it was devalued - you'd need 10,000 of them to buy a hotdog.
See, if gold were pegged below its market price, you'd have a defacto repeat of the gold window, and if it were pegged above the market price you'd have a flood of gold coming into the treasury, but a flood of dollars leaving in exchange, which would tend to drive prices up.
Frankly, the whole thing makes my head hurt. What's a dollar really worth, other than what it will buy today? Actually, I don't even own any US dollars - I beat Standard and Poors to the downgrade by over ten years - I got out of $US completely in 2000 and haven't been back since. Every investment we own is in either Canadian, or some other currency. Not that that's any protection against a real collapse, but how likely is that?
Feh.... I need a drnk.
ebear
