[ekianjo]

> So now, gold prices have been weak for a few years, so they have to come up with a new narrative

Not sure about the narrative you describe, but it's a clear fact that it's harder and harder to buy gold anonymously, without declaring to the State where you stash it. Makes it practical the day they come to get it back and give you worthless paper instead.

[CDRdude]

If I was a government, I wouldn't even want to take it back. Storing gold seems like a hassle compared to storing the equivalent value in regular currency.

[ekianjo]

Really ? Why do governments keep tons of bar Gold then in the first place ? Have you ever seen the actual inflation of paper money over like, 50 years ? 1 Million USD used to be a lot of money back in the 60s-70s, nowadays it's a commodity and 1 billion is rather the new standard of "large sum".

[joshfraser]

Gold actually has intrinsic value. Fiat currency does not.

[stefantalpalaru]

Yes, but is gold's value for the electronics industry anywhere near its market price? The demand seems a lot smaller than the offer (they use about 320 tons/year - http://www.bullionstreet.com/news/electronics-industry-uses-... and the metal is recyclable).

[dragontamer]

Harder, or easier? It was straight up illegal to own more than 5-ounces of Gold between 1933 and 1971 in the US.

[AnimalMuppet]

Well, easier than that. But after 1971, you could go to a coin dealer, hand them cash, get gold, and I'm pretty sure they didn't report your name to the authorities.