Bergmann & Co. International – Will We See a Return to Gold Standard?

FOR IMMEDIATE RELEASE
Lakeville, Minnesota, United States of America (Free-Press-Release.com) September 20, 2011 -- Bergmann & Co. International: Gold at $1800 an ounce and widely tipped to see out 2011 at or around the $2000 mark has seen a flurry of coverage of the metal in the both business and mainstream media but one of the most significant aspects of the renewed interest in gold has been the level of interest being shown in the possibility of a return to the gold standard.

The gold standard was a system by which a country’s currency was backed by gold. This meant that a specific amount of paper currency in circulation had to have a corresponding amount of gold in the country’s central bank’s reserve.

A Bergmann & Co. International researcher explained, “The gold standard effectively dictated how much money a government could create so budget deficits were very rare since the law prevented the government from printing or borrowing additional money without collateral in gold.

“The vast budget deficits being run by developed countries would not have been possible on the gold standard and many people are beginning to suggest that the discipline it forces on governments would prevent another sovereign debt crisis like that engulfing Europe,” said the “Bergmann & Co. International” researcher.

Central banks around the world have been acquiring more gold and many believe that they are losing faith in the ability of the US dollar to preserve the value of their reserves.

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