Gold Standard: Who owns the gold if the notes are lost?

Discussion in 'Currencies' started by Load of Bullion, Feb 21, 2014.

  1. Load of Bullion

    Load of Bullion Well-Known Member

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    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..

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  2. long88

    long88 Member

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    back then.. they already have a fractional reserve system even on gold..
     
  3. Load of Bullion

    Load of Bullion Well-Known Member

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    Different topic.
     
  4. Jislizard

    Jislizard Well-Known Member Silver Stacker

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    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.
     
  5. Clawhammer

    Clawhammer Well-Known Member Silver Stacker

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    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..
     
  6. Old Codger

    Old Codger Active Member Silver Stacker

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    No note in possession , no claim to any gold.

    You lose the paper, you lose any claim to replacement in any form.

    OC
     

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