If notes, redeemable for gold are lost or burnt etcwho gets the gold?. or is this a not an issue on the scale of things. Deflation?.. The notion just popped into my headso I'm posting for thoughts..
It would be the equivalent of losing the gold itself. I guess it would sit in the bank and never be redeemed, it wouldn't belong to the bank, nor to the customer. Better to hold the gold on a debit card rather than as a note in that case.
Hmmn.. it's a very good question. wonder how many gold coins were 'lost' over the years, down drains, dropped in long grass, etc. I suspect individual banks could solve the problem through regular stringent stocktakes/audits of existing gold holdings vs debits outstanding with customers. That way individual banks are covered... if this infomation were collated across the nation it could give a fair indication of a imbalance between the notes and gold..
No note in possession , no claim to any gold. You lose the paper, you lose any claim to replacement in any form. OC
