Return to Gold Standard Would Send Price Soaring to $10,000 – CNBC

Published: Thursday, 13 Oct 2011 | 1:29 PM ET

By: John Melloy
Executive Producer, Fast Money & Strategy Session

All the major countries in the world are in a race to debase their currencies in order to restart their economies. Either economic growth returns or—as some doomsayers predict—the 40-year run of fiat currencies ends.

Gold bars

Tom Grill | Iconica | Getty Images

And if under this worst case scenario the solution was to return to the gold standard of the Nixon years, the price of bullion would be worth $10,000-plus, six-times the current price, according to Paul Brodsky, co-managing member of QB Asset Management company and a self-professed ‘Gold Bug.’

To be sure, a return to the exact terms of the Bretton Woods Monetary Agreement is a near political impossibility because of the traumatic devaluation in the U.S. dollar it would cause. Yet, a move away from debt-based currencies to a system somewhat based on hard assets is not out of the picture if the global economy doesn’t recover or policy makers don’t allow for a painful deleveraging, some investors say.

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via Return to Gold Standard Would Send Price Soaring to $10,000 – CNBC.

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