isn't there lots of gold locked up in fort knox and/or elsewhere? why is it locked up? why are we not using it to make weddings rings? wouldn't it help stimulate the economy to make it into something?
2006-09-01 03:11:56 · 2 answers · asked by Anonymous in Business & Finance ➔ Investing
Originally the gold was used as backing to our money, so there was a basis for the value we put on it. For every dollar we printed there was a dollar's worth of gold in the vault. Now it's used more as a bank for gold. Lots of countries store their gold there since it is the most secure place. Also, there's plenty of gold to be used to make wedding rings, if we flooded the market by taking out all the gold in fort Knox to make jewelry, then gold would lose most of it's value.
2006-09-01 03:20:09 · answer #1 · answered by ask the eightball 4 · 0⤊ 0⤋
It is locked up so that people don't steal it.
If the world's supply of gold were suddenly let loose on the market to make jewelry, then supply would outweigh demand and prices would drop like a rock. This would not be good for the economy.
2006-09-01 10:22:41 · answer #2 · answered by Ranto 7 · 0⤊ 0⤋