It's been mentioned before on this thread - gold metal as a currency exchange only works if it is relatively rare. If the quantity of mined gold is actually ten or more times prevalent than currently thought, there will be problems.

A commenter at [link to divinecosmos.com] explains:

D.
December 18, 2011
...

David,

I've been listening to your radio interview with Kerry Cassidy and I'm stunned by what I'm hearing.

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There is no intrinsic value to gold. It's worth is based on SUPPLY and demand. If the supply is many times more than what the market thought, the price will plunge accordingly.

I'd also like to share with you some additional information that might give you a better perspective.

I recall several years ago, around the time of the financial crisis, that there were reports that the larger financial institutions like Lehman Brothers, etc. had huge short positions on gold.

Could it be that they understood how much gold there really was in existence and getting positioned to take advantage of a major plunge in price?

Add to that, the fact that Robert Prechter Jr., who is the acknowledged worldwide expert on Elliott Wave Theory, which has a remarkable track record of correctly predicting price trends in financial markets, has been predicting that gold has been in a speculative blow-off ie. a bubble and is now on track for a major bear market that will wipe out 80-90% of it's value.

What I'm thinking with regards to the notion that there is far more gold in existence, than is publicly acknowledged, is that those who own the gold, have a vested interest in keeping prices high.

If the world learns that gold is as common as copper, for example, then it will be priced accordingly and will no longer be considered as a precious commodity.

The idea of backing a currency with gold then becomes problematic because there would be far too much gold and if you take all of the paper currency in circulation and divide it into the actual higher gold supply, you may find that each ounce of gold is only worth ten cents (for example).

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