Continuing on yesterday’s discussion about what to do in the post economic collapse (ecopalypse), my friend wants to return to a gold standard.  While I own physical gold and agree it’s prudent to own some, it’s not the panacea that many people think it will be to return to a gold standard.

For starters, if gold increases to $2000/oz you can bet that there will be more armed robbers chasing after women’s (and men’s) wedding bands and gold jewelry.  You’ve already seen those cheesy “Cash For Gold” commercials and how long before outfits like that become the defacto pawn shop for criminals?

I just finished Kim MacQuarrie’s The Last Days of the Incas which gives a great overview of the Spanish conquest of the Incan Empire and it helped remind me that there was a great deal of suffering in the world because of the lust for the yellow metal during the colonization period.

Imagine if gold increased in value to $5000/oz.  What do you think would happen to society at that point?  Walking around with gold jewelry of any kind would be the same as flashing a giant neon sign with, “I’m Loaded, Rob Me!” right over your head.

While I occasionally have been infatuated with gold, I clearly understand the danger it represents if the price for it gets out of control.