Gold, silver and bankrupcy

Economics Economics Questions
1

Hi everybody,

what would happen to prices of gold and silver if the US or Europe with Euro declares bankrupcy?

Thanks in advance for your replies and have a great day.

Martin

2

They wouldn’t be priced in USD or Euros anymore, that’s for sure! I would imagine that if and after a new fiat takes the old fiats place, compared to those exchanging with the old currency, people who exchange for new currency with gold or silver might be better off.

But now that I think of it, I don’t know that just because a country declares itself bankrupt, they necessarily change to a new currency. Hopefully someone can answer this.

3

When the USA was bankrupt in the 1930s, it outlawed ownership of gold and forced its citzens to redeem gold for paper money, after the gold was collected the government changed the ‘fixed’ exchange rate and viola no more bankruptcy.