Acceleration

Surprisingly, one of the biggest wastes of fuel is on acceleration. If you’re punching the gas pedal like you’re running the Indy 500, let off. Accelerate slowly from a stop and you’ll notice that your car gets better fuel economy.

Braking

If you’re one of those drivers who apply the brake when you get to the stop sign or red light, consider letting off the gas and applying the brakes a bit earlier. By letting off the gas and coasting for a bit, you save a significant amount of fuel over the course of time. In essence, anytime you can take your foot off the pedal, your wallet will thank you.

Choose Your Route Carefully

In most instances, there is more than one way to get where you’re going. If you’re really interested in saving fuel and cutting down on costs, try to stick to highway driving as opposed to stop-and-go traffic. Heavy congestion kills fuel economy. Remember – your engine burns gas as long as it’s running, whether your car is moving or not. Highway driving, while not necessarily hurdle-free, is a far cry better than being stuck in an unmoving line of traffic in a heavily congested area.

Tire Pressure

You might not think it, but your tire pressure is one of the largest factors affecting your fuel economy. If your tire pressure is too low, then your engine and transmission have to work harder to turn the wheels. The harder they work, the more fuel they consume. Ideally, you’ll keep your tire pressure set to your OEM specifications – check the driver’s side door placard to find out what you should have in each tire. Check your tire pressure regularly to make sure it stays consistent.

Air Filter

In order to use gas, your engine has to combust it – that requires oxygen. The air intake on your engine is protected by an air filter. It keeps out dirt, debris, pollen and other unwanted elements, much like the filter on your home HVAC system. Over time, that filter becomes dirty and clogged. The dirtier your car’s air filter is, the less oxygen makes it to the engine and the harder your engine has to work. That equates to wasted fuel – money out of your pocket. Make sure you change your air filter regularly. Most automakers recommend changing it about every 15,000 miles, but that will vary based on your local driving conditions.

Alignment

Another “hidden” factor that can affect your car’s fuel economy is the alignment. In an ideal situation, all four wheels track straight. Sadly, that ideal situation is rarely the reality. Almost all cars are out of alignment – it happens gradually. However, if your car is seriously out of alignment, you’ll find that your fuel economy (and tire life) suffers badly. This is because the tires aren’t tracking straight down the road surface. They’re turned inward or outward, and your engine has to struggle to keep things rolling.

As you can see, there are several ways that you can improve fuel economy and cut costs at the gas pump. Continue to treat your car the way you would like it to be treated with quality floor mats that you can buy at AutoMatStore.

You can make online as the Internet has opened doors for people to connect across the globe. No longer are you geographically restricted as you do your work. Today, jobs can be had online and much of that work can be done from your home, an ideal option for stay-at-home mothers and fathers. As with anything, scams abound so before you agree to take a gig, you’ll want to make sure that the job is valid and offers a fair wage.

Blogging — Content creators are needed by businesses small and large. Some business operators prefer to outsource their work, paying bloggers to contribute short, timely articles or long form work as needed. If you have a solid writing background, you can apply for opportunities by querying companies directly. You can also find work through third-party sites such as Guru and Elance.

Writing — Although blogging is writing, people who provide web or ad copy have a certain gift that many other writers do not possess. Sell your talents to companies, by providing web copy, press releases, ad copy and other writing needs. Some gigs are short-term while others can be long-term and may be temp to perm. Offer a contract for jobs that are regular or gigs that are for more than $500.

Websites — You say every business has a website? Nearly all do, but some do not and could use your services. Other businesses have a website and either need to have it maintained or may be looking for someone to build smaller, micro websites to launch a new product. You don’t have to be a CSS or HTML guru to build a website. If you’re familiar with WordPress, you can use this platform as your content management system, creating dynamic and colorful websites for your customers.

Marketing — Marketing has evolved to where there seems no end in the way companies get the word out. Social media platforms, typically Facebook and Twitter, allow for corporate promotion for the creation of carefully constructed campaigns with measurable results. People are needed to send and manage tweets, and interact with customers as they respond. Work as part of a team or approach businesses with your plan. Combine online marketing with telemarketing, e-mail marketing and other services to enhance your portfolio.

Virtual Assistant — If you have multiple talents, you can market yourself as a virtual assistant. Also known as personal assistant, virtual professional or online business manager, this professional can provide each of the previously mentioned skills and more. Some VAs are expects in legal matters, others work as translators and still others are job coaches. There is no limit to what you can do and offer.

Make Money Online

There are many other ways to make money online. Some people have a knack for buying and selling through eBay and Craigslist. Others have found taking surveys and accomplishing market research is right for them. Indeed, the Internet has made it easier for people to make extra money online or even launch a new career.

1. Get paid for your opinion — Online surveys and in-person opinion sessions can pay off with companies valuing what you think. If looking online, you’ll come across companies such as E-Rewards that give you credit toward airline miles, magazines and a host of other items. Some companies, such as Resolution Panel, provide gift certificates and cash cards. Malls are popular places where interviewees set up shop with interviews ranging from minutes to an hour or two.

2. Become a secret shopper — How do store managers ensure that their employees are treating their customers right? By sending in secret shoppers to buy items and interact with them. You’ll work undercover, never identifying who you really are. You’ll file a report and that information will be used by the company to gauge its customer service capabilities.

3. Sell products directly — Direct selling has been around for decades, with Avon one of the most recognized and oldest names out there. Others include Herbalife, Amway, Mary Kay, Tupperware, Natura and Vorwerk. Most work the same way where you host parties and invite people to sample your products. You get a commission for each sale, with the ability to make even more money if you’re a good seller.

4. Sell your photos — Do you have a flair for taking photographs? You can make that hobby pay off by submitting your best work to stock photo agencies such as Shutterfly, ShutterStock, iStockPhoto, Fotolia and Dreamstime among the 15 places listed by Sitepoint that will take your photos. Typically, commission- or fee-based.

5. Check your coins — You know that jar of coins you have in your living room? Well, that money can be wrapped and redeemed for cash. But, hold on — check your coins carefully because old or unusual coins can fetch far more than the amount that they are worth. Coins consisting of more than 50 percent silver can fetch you a lot of money. Half dollars made before 1970 are particularly valuable.

6. From hobby to business — You don’t have to launch a formal business to make some money. Instead, if you have a hobby, then you might be able to turn it into a moneymaker. The best approach here may be to offer your talent to others, people who might be interested in taking piano lessons, having your detail their car or build their website. You can advertise on Craigslist or simply by word of mouth.

7. Hold a yard sale — What sort of “stuff” do you have in your house? Likely, there are things on hand you no longer want. You could give it away, but you can also sell it. Set up shop on a Saturday morning, put up some signs and get selling. Follow our tips to ensure that your sale is a successful one.

When it comes to truly smart ways to make extra money is making money that won’t take a lot of effort. True. some direct sellers work their Mary Kay like there is no tomorrow, but then these people are full-timers, not individuals who are looking to make extra money.

2012 TRAVEL PLAN IDEA: NEW HAMPSHIRE

Best known as the Granite State. And granite you will see. Some of the more beautiful mountain scenes on the East coast. Make your plans.

• view: our New Hampshire travel guide

THIS WEEK’S TRAVEL PROMOTIONS

This week’s featured destination is Las Vegas. Summer in Las Vegas means more than warm nights. With glittering poolscapes like the Garden of the Gods, bold outdoor rock bars like Carnaval Court, and sizzling nightspots like the chic VooDoo Lounge, every second is a sensation. Book your Last Vegas vacation getaway today! 

• Save from Poolside to Partyside. Book a trip today & get up to 25% off Summer Stays in Las Vegas from Travelocity!
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• Spring into Summer Sale: Book now and save up to 50% on hotels and vacation packages with Travelocity! Ends 5/31.
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BATHE YOUR HOME IN LIGHTS
You can build a landscaping showcase with outdoor lighting that highlights a majestic tree, a flowing pond, and the architectural style of your home. And with sun-powered energy saving lights, you can add decor without expensing electricity.

tip: see what you can do with outdoor lighting

(jumps to our Home Improvement Center)

FOR YOUR GRADUATE
Whether they are graduating from high school or from college, they deserve a nice recognition from you for all of their work. What kind of gift would make that statement of congratulations from you?

Quick Link:

• link to our "gifts" center for ideas

FINDING ENOUGH MONEY FOR SCHOOL
Download our college budget to design your college aid and expense plan (FREE download). The worksheet will allocate funds for expenses and other needs and help you find the money you need to stay in school.

Find College Loans

Link to: compare and shop student loan options

RATES ARE LOW AGAIN
Now is the time to refinance your mortgage to lower costs and consolidate your bills. Allow us to find you the best rate and term.

View our Refi Guide:

• refinance your home guide

You’re shopping for a new home, wanting to take advantage of historically low mortgage rates and rock bottom home prices. As a first-time or transitional home buyer, you stand to come away with a deal that can save you tens of thousands of dollars. You’re also vulnerable to making some costly mistakes, errors that can erase some of the gains you can make.

Read on for a look at costly house hunting mistakes and how to avoid them:

1. Avoid emotional attachment — Falling in love with a home can blind you to problems ranging from home repairs that need to be made to a neighborhood that is in decline. When you’re emotionally attached to a home, you’ll find it more difficult to walk away. Be dispassionate when negotiating for a home — fall in love with it only after you have done your homework and have sealed a deal.

2. Know your limitspre-approval, you may search for homes outside of your price range, wasting time shopping for a home that you simply cannot afford. Time is money — narrow your search and shop within the range you can afford.

3. Search and compare — You may know the home that you want, but you will only understand your local market if you know what competing homes are like and what these homes are selling for. Look at at least four or five other homes before settling on the one you want to buy. This will allow you to find out how your home measures up and if you’re paying the right price for it.

4. Inspection ignorance — If you are buying a home and an inspection is required by the mortgage company, that is a good thing. However, even an inspection may not turn up everything about your home. Hire an inspector that knows his stuff, an individual who comes recommended and will give you a detailed report with his recommendations. Your home may pass inspection, but there could be underlying problems that may crop up and cost you a few years down the road. Pay for that radon test and resolve home problems before closing. Review the home inspection report carefully.

5. No agent involved — People buy and sell homes all the time without the input of a real estate agent. While this option may work out for the seller, it can be a big problem for the buyer. A knowledgeable real estate agent knows the home, the neighborhood and can answer questions that go beyond the research you need to do. A real estate agent can also oversee the closing process, ensuring that the inspection has been completed, that the attorney review has been accomplished and that you’re ready for closing. Too much can fall through the cracks without a professional overseeing the lengthy and complicated home-buying process.

Final Thoughts

You don’t want to pay too much money for a home, right? You also don’t want to uncover secret costs later on including an unforeseen property tax increase, a road expansion that will gobble up part of your front lawn or a nearby natural area that will be paved over to expand a large retailer’s parking lot. Be thorough in your research and you’ll uncover much, giving you the information you need to make an informed buying decision for your investment.

You may have bought or refinanced your home a year ago thinking that you got the best possible rate on a mortgage. Likely, that rate was low, especially if you have very good credit. But, don’t look now: rates on 15- and 30-year mortgages have fallen again, reaching historic lows. Refinancing may have been out of the question before, but with today’s very low rates you stand to save a heap of money by obtaining a new home loan.

New, Low Rates

So, how low are mortgage rates right now? Well, they are subject to daily change and the new figures will come out tomorrow. Late last week we learned that interest rates for a 30-year fixed-rate mortgage averaged 3.84 percent, down from 4.71 percent last year.

If you are in the market for a 15-year fixed-rate mortgage the news is even better as that rate has fallen to 3.07 percent down from 3.89 percent last year. If you’re a bit more adventurous, then you might want to consider an adjustable rate mortgage as the rate for a 1/1 mortgage is now at 2.7 percent.

Rates and Points

When shopping for a new mortgage, keep in mind that some lenders may want you to pay points toward closing your loan. For a 30-year mortgage that amount is averaging 0.8 percent which translates to a $1,600 fee for a $200,000 mortgage. Points on 15-year and ARMs are averaging 0.7 percent. Points, however, can be negotiated or avoided altogether. That is why you need a sharp eye and show savviness when negotiating for a new loan.

Another consideration for buyers are closing costs as these can add $3,000 to $4,000 to the cost of your loan. Those costs can sometimes be added to the loan, but you’ll also pay interest on it.

The following example can reveal whether refinancing is right for you. We’ve used a 30-year fixed-rate mortgage as the example with 0.8 points:

New Mortgage

Points:   $1,600
Closing:  $4,000

Loan: $200,000
Rate: 3.84 percent
Term: 30 years

Monthly payment: $936.47

Current Mortgage

Loan: $200,000
Rate: 4.71 percent
Term: 30 years

Monthly payment: $1,038.48

With the new loan you would save $102.01 per month. That equals $1,224.12 for the first year, but keep in mind you shelled out $5,600 in points and closing costs. It will take nearly five years to recoup your investment and you’ll also have one year longer to repay your loan.

Clearly, if you are seeking to refinance a mortgage you obtained last year, you need to eliminate points and reduce your closing costs as close to zero as you can get it. Otherwise, consider an entirely different approach such as taking on an ARM, especially if you plan to move in the next few years.

Chief Executive Officers know full well just how challenging it can be to do business. Some states are decidedly business-friendly including Florida, which has promised to provide the most welcoming environment for businesses. Some states, however, make it difficult for businesses to succeed, burdening them with high taxes, onerous regulations or simply making it difficult for workers to enjoy a decent quality of living.

Business Environment

For the eight consecutive year, Chief Executive survey CEOs across America to get their input about the states where they do business. Each year Texas has topped that year while California has the dubious distinction for finishing in last place for the eighth straight year.

This year’s survey resulted in 650 responses from business leaders, up from 550 in 2011. Texas scored high for its business-friendly tax and regulatory environment, finishing second to Utah in workplace quality. Florida finished second this year, swapping places with North Carolina. Florida’s Republican governor, Rick Scott, has promised to overtake Texas, with the Sunshine State adding 140,000 jobs and seeing its unemployment rate fall by 2.1 percent for one of the most significant decreases among all 50 states.

Fourth through tenth place was held by Tennessee, Indiana, Virginia, South Carolina, Georgia, Utah and Arizona. Oregon had the largest drop falling from #24 to #33. Louisiana had the biggest jump, moving from #27 to #13 on the list.

The bottom 10 states had Hawaii in the 41st position followed by Oregon, Pennsylvania, Connecticut and New Jersey. The bottom five states were Michigan, Massachusetts, Illinois, New York and California.

Right-to-Work States

Most of the top-performing states are right-to-work states, locations that make it easier for business leaders to adjust their workforces. Notably, workers seemed to move from lower performing states to higher performing states in search of employment. Indeed, New York and California experienced a net migration out of 1.6 million and 1.5 million respectively from 2001 to 2009. Texas and Florida had the largest net migration in. Texas also accounted for approximately 47 percent of all new jobs from June 2009 to July 2011. June 2009 marked the official end of the last recession.

California remains locked in last place with Chief Executive noting that the Golden State once had the most attractive business environment. The magazine also called California the “most ruinously contentious place” to do business, something that 254 California companies concluded in 2011 when these companies moved some or all of their jobs elsewhere.

Related Articles

• Texas ranks No. 21 for CEO pay (bizjournals.com)
• CEOs: Illinois 3rd-worst for business (chicagotribune.com)
• Despite job growth, Texas’ unemployment numbers on rise (bizjournals.com)

2012 TRAVEL PLAN IDEA: NEW JERSEY

Now what will you find in New Jersey? For starters, you can visit the historical trails in Trenton – then hit the great New Jersey beaches to cool off – and then take in a late evening at Atlantic City for fun.

• view: our New Jersey travel guide

THIS WEEK’S TRAVEL PROMOTIONS

This week’s featured destination is Montreal. No matter the season, time, or weather, Montrealers flock to festivals. Relaxed, safe, and lively–Montreal’s truly unique festival vibe is enjoyed by people of all backgrounds and origins. Sure, the downtown core may be closed off to traffic and flooded with people, but that’s just proof of how serious Montrealers are about having fun.  

• It’s Always Festival Season in Montreal! Start planning your trip now and save up to 25% with Travelocity! Ends 5/15.
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MAKE YOUR WALLS BETTER
Your walls can make a statement like no other. How to color it – dress it – and hang decor on it. So jump over to our walls section to view color ideas and other stuff for the walls.

tip: view wall ideas

(jumps to our Home Improvement Center)

GRADUATION TIME
Graduation is coming up for students all over. Give your recent grad a party with friends and family to say congratulation.

Quick Link:

• link to our "party center" for party ideas

DID YOU GET ENOUGH MONEY FOR SCHOOL
Many college-bound students have made their decision on where to attend this fall. Now the question is how to pay for it? Download our college budget to design your college aid and expense plan (FREE download).

Find College Loans

Link to: compare and shop student loan options

WATCH YOUR TRANSPORTATION COSTS
Gas prices are rising given the coming summer months. Keep your costs down by review tips on lowering transportation costs.

Lower Transportation Costs:

• tips on lower transportation costs

There is perhaps no older form of currency than precious stones and metals such as gold, silver and diamonds. From the earliest records of human history until the modern portrayals of diamond heists in Hollywood, these pretty little things have entranced the minds and drained the pocketbooks of human civilization through the ages. And as the current financial climate continues to waver and falter, many have become disenchanted with the imaginary value of paper currency and turned to these precious materials as a more stable alternative, choosing to deal in carats rather than cash. This is evidenced in the explosion of dealers who eagerly gobble up gold, silver and gems in exchange for flimsy dollar bills.

However, as this market’s popularity grows so too do the chances of being scammed by those eager to take advantage of new unseasoned recruits. And unlike cash which is elaborately marked and identically printed to be difficult to forge, precious metals and stones come in different sizes, shapes and colors and indeed no two may look exactly alike.

Therefore, to help provide a rough guide for identifying flaws, we’ve compiled these methods for spotting fake gold, silver and diamonds.

GOLD

For your eyes only – Though perhaps the most unreliable method, sight still remains a good first step for identifying fake gold – and it also is the lease intrusive way as well. Good signs to look for include color inconsistencies around the edges or areas which have experienced the most abrasion. If most of the piece looks gold but these areas show another metal, there’s a good chance your piece is only gold plated.

Heavy Lifting – Gold should not be taken lightly – precisely because real gold is very, very heavy and approximately two and a half times denser than steel. The reason that so many people are unaware of gold’s density is because we usually deal with it in amounts too small to be able to properly appreciate its heft. But a good scale will be able to pick up the difference between a piece of true gold and an imposter, and if your piece is big enough a simple pick-up test with the gold piece and a similar non-gold one should be a good indicator as well.

Watered Down – Another test that proves slightly more complicated than the previous ones involves placing gold in a vial of water and measuring the water displacement to judge the density of the piece. Judging by how much water is displaced, one can roughly tell if the piece is dense enough to qualify as gold. However, because this is a complex method that requires precise measurements, it is best to have an experienced jeweler assist.

Soft at Heart – Gold may come across as one of the more haughty metals, but it really is a softy at heart. It is actually so soft that the average fingernail can make an indent if pressed in hard enough. This softness explains why some gold dealers insist on biting down on the piece, to get a “feel” for it and to note the indentations. However, the bite test is not the most recommended of gold tests, as it can damage both the gold and one’s teeth.

SILVER

Opposites Attract – While not a perfect test, using a powerful magnet can be a good place to start. Since silver is not magnetic, if the item displays any form of magnetic attraction than it’s got another metal underneath. One problem with this method is that a determined scammer can use other non-magnetic metals as well, such as stainless steel.

Acid Reflex – Using acid can be a very effective way of telling whether the piece is silver, though it might come at the cost of a minor cosmetic defect. The method involves making a small scratch on the piece and then placing white vinegar in the scratch. If the area exposed to vinegar turns a greenish color, then it is likely not silver.

Cold to the Touch – Silver is a very useful metal, in part because it has the highest thermal conductivity of any metal. Because of this unique property, it absorbs temperature at extremely fast rates which has given rise to the popular “ice test.” This involves placing an ice cub on the piece, and judging how fast it takes for the ice cube to melt and the silver to become cold. Whereas steel might take 30 seconds, silver’s high thermal conductivity causes this change to occur almost instantly.

Bending to One’s Will – In its natural form, 100% pure silver is a weakling amongst metals and would be too fragile to realistically implement into a functioning object. Therefore, people mix it with other metals to toughen it up a little. But, with sterling silver, the purity levels should be high enough to allow for some bending with minimal effort.

DIAMONDS

Foggy Knowledge – This test happens to be a favorite among jewelry appraisers since it is easy and fairly reliable. Simply put, it involves holding the diamond up to your mouth and breathing on the piece to “fog it up.” Since real diamonds disperse heat almost instantaneously, if the piece fogs up then it’s probably not a real diamond. When dealing with a real diamond, the fog will have dispersed before you even have the chance to look at it.

Weight Watcher – Weighing the diamond is a reliable way to test a diamond’s authenticity since a genuine diamond will weigh approximately 50 percent less than an artificial one. However, to use this test correctly requires a very accurate scale and preferably both a fake and a real diamond to compare weights between.

Clearly a Fake – Diamonds refract light in high levels, which makes them very difficult to see through. This refractive index means that if you place the diamond on text, you should not be able to read the text through the piece. If it’s clear, odds are that the diamond is a fake. This method, however, is not fool proof since some diamonds are cut shallow enough to read through.

Got the Blues – Also known as the UV Test, this method involves placing the diamond under a UV light and observing its appearance. If the diamond shows signs of a blue florescence, odds are it’s a true diamond. A troubling fact about this test is that the absence of blue light does not necessarily indicate the diamond is a fake – it could mean that the diamond is of a higher quality. Thus when the blue florescence is visible, it confirms that the piece is a diamond but of lesser value.

Though these tests are a good start when testing your gold, silver or diamonds at home, there are also a multitude of other more scientific tests that may be worth exploring for more valuable pieces. Additionally, taking the piece to a reputable jeweler for appraisal still remains the most foolproof way of assessing the difference between precious and imposter.

Author Information

Alex Levin is a writer for The DuMouchelle Diamond Exchange, appraisal and auction specialists for over 80 years.

Everyone has heard someone lament about the move from dropping the use of gold to back up United States currency, but have you ever wondered about how gold began to be used as currency in the first place? Gold wasn’t always as sought after as it is today. Although gold was first used as jewelry in approximately 4000 B.C., it took more than 2,000 years for societies to start using gold as a primary means of exchange.

The Early Years

Gold became the standard unit of currency in two separate regions of the world sometime around 1500 B.C.: Egypt and the Middle East.

• Egypt – Egypt’s gold-rich Nubia region allowed the nation to gain power in international trade. The nation became extremely wealthy in ancient times as gold began to gain recognition as a standard medium used for international trade.

• Middle East – In the Middle East, the coin known as a Shekel became a standard medium used for trade at this time. The Shekel was not made entirely from gold; A Shekel is a combination of approximately one-third silver, one-third gold and one-third other metals.

Early gold use continued to be prevalent in Asia, the Middle East and Europe. The Greek and Roman Empires relied heavily on the use of gold for trade.

Great Britain

Great Britain first established the use of precious metals as currency with the introduction of the pound in 1066 A.D. The pound is so named because it was literally made of a pound of sterling silver.

In 1284 A.D., Great Britain introduced its first gold coin to be used as currency. The coin was known as a Florin, and more gold coins were introduced shortly after the Florin. Even though the Florin was introduced in 1284 A.D., the country did not establish a monetary system using gold and silver until 1377 A.D.

Great Britain ended its gold standard in 1931 because of supply issues connected to gold being sent overseas.

The United States

Paper currency used in the United States used to be closely tied to gold. In fact, people owning paper money were able to trade paper currency for gold between 1870 and 1933. While people were not able to directly trade paper currency for gold starting in 1933, it was still backed by gold until 1971.

The purpose of ending the exchange of paper currency for gold in 1933 can be linked to the Great Depression. President Franklin Roosevelt observed that banks were struggling to stay in business as people lost confidence in paper currency and traded it in for gold at an alarming rate. Because of this issue, Roosevelt decided that the United States government would need to be in control of all of the gold. People were no longer able to trade paper money for gold, and households were not permitted to own gold.

Although people could no longer trade paper currency for gold, currency was still backed by gold until President Richard Nixon ended the gold standard completely in 1971. The decision was made because Nixon was concerned about a major problem involving cash flow in the country.

Modern Global Use

Currently, there are no countries that are using the gold standard. Paper and coin currency is used in developed nations. Most countries keep a reserve of gold, but none allow people to trade paper currency for gold.

Should the Gold Standard Return?

A question that is asked time and time again is whether the United States and other developed countries should return to the gold standard. There are many arguments for and against reestablishing a gold standard.

Benefits

- Consumers would be more confident in national currency because it would be backed by an actual commodity.

- An international gold standard could lead to stability in the markets. Because all world currencies would be reliant on gold, stability in relation to other currencies would be constant. Supporters of the gold standard suggest that adopting an international gold standard would cut down on the possibility of conflict and war.

Negatives

- If one country decided to return to the gold standard while others remained reliant on paper currency, there is a real possibility that the country would suffer from deflation if the price of gold rose. The global economy does not allow for the gold standard to be observed only in select countries. These countries would have major issues with exports in the case of a rise in the price of gold. Eventually, deflation would lead to a recession.

- The gold standard also limits the supply of currency. The government would not be able to regulate the flow of cash because gold would be needed to back up any currency that is released into the economy. Gold miners would hold more power than the government regarding cash flow in the nation.

- Although many proponents of returning to a gold standard claim that gold is a stable investment, gold has actually lost value in recent history.

Although countries no longer use gold as a form of currency, many people have chosen to personally invest in the gold market as part of a larger investment portfolio. While gold values constantly fluctuate, economists agree that gold will never be deemed completely worthless.

Author Information

Alex Levin is a writer for The DuMouchelle Silver & Gold Exchange, cash for gold appraisal and auction specialists for over 80 years.