Quote:
Originally Posted by DaveinGermany
Not my area either but I think it's to do with dilution of the value although the Pounds pretty devalued anyway. As BG said what is written on the bank notes basically equates to the Government issuing an I.O.U./credit note 5,10,20,50 pound notes instead of the equivalent in Gold to the bearer (you with your quids) for their I.O.U./Credit note (Monetary notes). Theoretically the amount of Gold should equate to the Quid note/coins issued to the public, so issuing new notes devalues the worth of the held Gold. I think  |
Not quite, Dave. We ain't been on the gold standard for many years and I doubt if we could ever return to it, not since Gordon Brown flogged off all our precious metal at a bargain basement clearout about 10 years back.