» Sat Jul 30, 2011 6:25 am
It will take a stupid move. I will answer with my few knowledge of geologist and a basic of economic geology.
First the country will have to create a reserve of platinium equal to the amount of money existing in its economy. The question is: is there enough mined platinium worldwide to do this for example for USA ? The answer is no. If a country will try to do this, it will attract a huge amount of platinium to be melt in ingots for making their reserves. What will happen to the car and chemical industry which is using the bulk of platinium ? From a geological point of view, it is totally stupid move because platinium is produced in less countries than gold. So, it will put this country in the hand of the big platinium producers: South Africa and Russia. To a lower extent, USA and Canada are producing a bit of platinium as well. One gram of platinium is costing around 50-60 $. Imagine the volume we will need to sustain an economy like USA.
However, there are no countries (to my knowledge) which are using the gold as the standard. Before US$ was 1.5 g of gold, this was a fix standard. USA left it first during WW1 and then progressively during the great depression in the 30's and the convertibility of US$ in gold was ended in 1971. The last country to drop gold convertibility was Switzerland.