Duncan
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The immediate effect of a change in speculative opinion in gold prices of
commodities would come from the direct transactions in stocks of gold and
stocks (or futures contracts) in commodities. These transactions will
move prices, and, allowing for smoothing, will eventually influence the
prices at which newly produced commodities sell as well.
Paul
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Are you assuming the existence of state fiat money here or a gold
coinage?
If the latter, what do you mean by transactions in stocks of gold?
Surely you do not mean the buying and selling of gold, since that
is just the conversion of bullion into coin, which the mint will
do for free.