The return of the Gold Standard requires the removal of the reasons that led to its abandonment and the removal of the factors that led to its decline.
This would require the following:
• Stopping the printing of paper currency
• Restoring the dealings with gold currency
• Removing the custom duties on gold and all restrictions against its import and export
• Removing restrictions against owning, possessing, buying and selling of gold, and dealing with it in contracts.
• Removing restrictions against the possession of the major world currencies and making competition free between them such that they take a fixed price in relation to each other and in relation to gold, without state intervention by reducing or floating their currencies.
It was under Franklin D Roosevelt in the 1930s through emergency law that private gold ownership was prohibited for US citizens; this importantly was a crucial step in ensuring that the market for gold could not operate, since on a like-for-like basis Fiat cannot compete with the people’s preference for gold.
Whenever gold is left free, it will have an open market in a short period, and accordingly all international currencies will take a steady exchange price in relation to gold.The international dealings with gold will develop where the payment of the prices of goods contracts estimated by gold, takes place.
If these steps are carried out by one strong State ie the future Khilafah State, then its success would encourage other countries to follow-suit, which will lead towards returning the world to the Gold Standard once again.
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