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, rhodium, copper and platnium mining and several other important figures about crop, crop rotation, harvest food quotas, import and export quotas and other economic information. The news about gold is by far the most important, because the Guffingfordian economy is based on a gold standard. The State Gold Value is based on four month prospects, with expectation predicted in January of the previous year. Every four month the government reviews these statistics publically, and raises or lowers them if necessary. Most of the time, the numbers remain the same, even if they don't add up nicely. This rule was made to prevent absurd price fluctuations because of relatively small drops in production. Take outside events such as weather, politics or strikes into account, and this is a very realistic calculation.

When more gold is mined, the relative price of gold is lowered. When the quota's are met, the price remains the same. When demand exceeds offer, the prise is raised. A delicate balance exists between the two, and neither of them ever showed any extremes after 1963, when the gold standard introduced in the 50's was made official (permanent) government policy to ensure enduring stability.

The State Gold Value is directly linked to the bullion and trade currency the Ducat Guilder, and if less gold is mined than predicted, the price of one troy ounce (31.5 grams) being at present 820 gulden, can rise to 850 gulden, or rise even more because of speculation. This used be called 'an extreme', and it has happened quite a few times in the past.