How will gold be priced and use transferred to GGMF or any other party once the Gold Units are Legal Tender?

There are two issues to address in this question, namely:

1. How will Gold be priced, during the Transition Period? This assumes that the Transition Period will impact the pricing mechanism until the last Country Member’s Transition Period has ended.
2. How will Gold be priced, post the Transition Period? This assumes that all nations are using the Gold Units.

Firstly, during the Transition Period, the price of gold will be determined by reference to the USD gold price per ounce.

Should a Country Member, who already has GGMF Gold Units as legal tender, wish to transfer the “use of” the gold to GGMF or another approved third party, the price will firstly be determined by reference to the last¹ USD gold price per ounce and then such FIAT valuation will be converted into USG (United States Gold Units) on a one-to-one basis and then automatically converted into the Country Member’s Gold Units through the use of the GGMF Exchange Rate table.

The effect of converting the USG to the Country Member’s Gold Units will automatically increase the number of Gold Units or reserves of Gold Units of the Country Member. In addition, this will be reflected in the movement in Trade Balances, which GGMF will disclose on a regular basis.

Secondly, should the Transition Period(s) be no longer applicable, the price of gold will be determined by reference to the last¹ USD gold price per ounce and then such FIAT valuation will be converted into USG (United States Gold Units) on a one-to-one basis and then automatically converted into the Country Member’s Gold Units through the use of the GGMF Exchange Rate table.

Given the ongoing trade between countries, the reserves of Gold Units for each Country Member will fluctuate and GGMF will publish the quarterly and annual Trade statistics for each nation, so ensuring full transparency.

Ultimately, over time, should the reserves of Gold Units for a particular Country Member grow significantly out of proportion to other Country Members, GGMF will, after carefully consideration of the projected sustainable growth of such Country Member, consider an adjustment to the Country Member’s exchange rate.

NOTES:

1. Should the US already have US Gold Units, then the last quoted USD to gold price, at the conversion of FIAT Currency to US Gold Units will be utilised.