Usually not a big fan of Parade magazine

[melm00se]

but this Sunday's issue had a good question:

http://www.parade.com/news/intelligence-report/archive/100214-should-the-us-sell-its-gold.html

Should the U.S. Sell Its Gold?

The U.S. has the world’s largest gold reserve—more than 8000 metric tons. That’s far more than Germany’s, which comes in second with 3400. At current prices, our reserve is worth an estimated $288 billion. Since the U.S. government could certainly use the funds, why not sell this valuable commodity? Does our country need to keep all of that gold?

[jdlh8894]

1. "Does our country need to keep all of that gold?"

DUH? Would you rather our economy be backed by 8,000 tons of plastic held in Bank of America? Not to say that it isn't already!

[melm00se]

2. our economy

(as are most economies) are backed by confidence in the economy. the US has not relied on gold as it's basis for our economy since the US dollar's ability to be redeemed for gold.

[DFW]

3. Why bother?

The Chinese are holding $2 TRILLION of our debt, and that's just China. Our gold would only cover about 15% of China's debt,
not to mention what we'd do if Japan, England and the EU came calling. What would we do then, offer them California (wait,
don't answer that!)?

It would be like taking one single antibiotic pill when a week's worth would be needed to wipe out the infection.

My personal take on gold is that it is an anachronism as a store of value. It pays no interest, you can't eat it, live in
it, heat your house with it, run your car with it, or educate your kids with it. However, MOST of the world still values
it and so, we must value it as well. We might as well keep SOMETHING of value around other than all those paper dollars
we are so confident of. The rest of the world might not always share that confidence, and I'd hate to have to apply for
a Chinese visa every time I want to visit the Bay Area.