State Gold Value

The State Gold Value is something unique and is only seen in Guffingford. Every four months (kwertaal in Hoogs) the Ministry of Economic Affairs releases the information on the gold, silver, palladium and platnium mining and several other important figures about crop, crop rotation, food quotas, import and export quotas and other economic information. The news about gold is by far the most important. Though difficult to explain, the State Gold Value is based on the four month prospects. When more gold is mined, the prise lowers (i). When the quota's are met, the price remains the same (ii). When demand exceeds the offer, the prise raises (iii). Keep that in mind.

i. The amount (coin quota) of gold coins struck needs to be raised to compensate the decreased value of the gold.
ii. Everything remains the same. This is the best thing that can happen.
iii. The amount of gold coins struck needs to be lowered to compensate the inscreased value of the gold.

The State Gold Value is directly linked to the currency (Ducat Guilder and if iii happens, then the price of one troy ounce (slightly more than 31 grams) being at present 230 ÐG, can drop to 220, or rise to 240. This is an extreme, but it has happened in the past. When more coins have to be struck, the gold previously mined (and exceeded a quota) has to be declared existent again, therefore lowering the State Gold Value. It is worthful to note this country uses ounces, not troy ounces to measure the weight. If you want to read more on the economic system, please read Guffingfordian Economy.