Look at a paper dollar bill in your pocket. This note no longer says
One Dollar in silver payable to the bearer on demand. Our currency no longer says
Twenty dollars in gold payable to the bearer on demand. Our currency is a Federal Reserve Note, it says it right on there in big capital letters. The Federal Reserve is a private corporation and not part of the US Government at all.
One of the biggest scams on earth is that the government calls our paper dollars money. Our currency is a medium of exchange, a unit of account, portable, divisible, durable, and fungible. Our paper currency is not a store of value. The government continues to deficit spending and print more and more of it out of thin air. Our paper currency loses its value over time. This is where the only real money comes into play. We call this real money GOLD. And of course, we are talking about physical gold that is in the form of a coin or a bar.
Gold as real money is a medium of exchange
Gold has historically been used as a medium of exchange. It has been widely accepted as a form of currency in many societies throughout history. However, in modern times, gold is not commonly used as a medium of exchange in day-to-day transactions. Instead, most economies have adopted fiat currencies, which are not backed by a physical commodity like gold but are based on the trust and confidence of the people using them. When the system collapses under all of this debt, it would be good to have a medium of exchange in gold as your backup plan.
Gold is a unit of account
Gold’s value is often expressed in terms of a fiat currency, and its price is quoted in various currencies on financial markets. This allows individuals and investors to assess the value of gold in relation to other assets or currencies. Furthermore, some individuals or organizations may use gold as a unit of account for specific purposes or transactions. Many BRICS and other countries are using gold to satisfy commodity transactions. Gold has a much bigger role today as a unit of account for some countries because of US sanctions imposed.
Gold as real money is portable
Gold is considered a portable asset. Its portability is one of its notable characteristics and has been one of the reasons for its historical use as a medium of exchange and a store of value. Gold is a dense metal, which means that a relatively small amount can contain a significant value. It is malleable and can be shaped into various forms, such as coins, bars, or jewelry, making it easy to carry and transport. This portability has made gold a desirable asset for individuals and traders throughout history.
Gold is divisible
Gold can be divided into smaller units without losing its value. Divisibility is an important characteristic of any medium of exchange or store of value.
Gold can be divided into smaller units such as grams, ounces, or even smaller denominations like fractions of an ounce. This divisibility allows for greater flexibility in transactions and pricing. For example, if the value of a gold bar is too high for a particular transaction, it can be divided into smaller units to accommodate the desired value. The divisibility of gold contributes to its liquidity and usability as a medium of exchange, as well as its attractiveness as an investment asset.
Gold as real money is durable
Gold is highly durable. Gold is resistant to corrosion, tarnishing, and most chemical reactions. Unlike other metals that may rust or degrade over time, gold maintains its physical properties and appearance over long periods. This durability ensures that gold retains its value and can be stored and preserved without significant loss or deterioration. The durability of gold allows for easy recycling and reusing. Gold can be melted down and reshaped without significant loss of material or quality, making it a sustainable and environmentally friendly asset.
Gold is Fungible
Fungibility refers to the interchangeability of goods or assets, where individual units are essentially indistinguishable and can be mutually substituted. Gold exhibits fungibility because each unit of gold is considered equivalent to another unit of gold of the same purity and weight. For example, a specific gold coin of a certain weight and purity is interchangeable with another gold coin of the same weight and purity. This fungibility allows for ease of trade and exchange.
Gold as real money is a store of value
Gold serves as a store of value because it retains its purchasing power over time. While the value of currencies can fluctuate due to various economic factors and central bank abuse, gold has a long history of maintaining its relative worth. This is because gold is not subject to the same risks of depreciation or inflation that can affect fiat currencies. Gold has global acceptance and recognition as a valuable asset. It can be easily bought, sold, and traded across borders, making it a liquid store of value.
Egyptians started using gold and silver as currency over 5,000 years ago but it wasn’t money yet. Pieces were odd and not interchangeable. The exchange of values was difficult. What is amazing is that the same gold still exists today and has stood the test of time. That old Egyptian gold still has significant value.
The first coins in Lydia, an ancient kingdom located in what is now western Turkey, are believed to have been minted around the 7th century BCE. Lydia is credited with being one of the earliest civilizations to introduce a standardized system of coinage. The Lydian coins were made of electrum, a natural alloy of gold and silver found in the region’s rivers. These early coins were small, bean-shaped pieces, and they featured simple designs, often depicting animals or abstract symbols.
Today our currency is fiat. Fiat currency is not real money because fiat currencies have never stood the test of time concerning their store of value. Our dollars today are currency, not money. Fiat currencies are printed out of thin air. Fiat currencies support a bankrupt banking system of fractional banking. Fiat currencies allow the governments of the world to create bonds with the click of a computer key. Numerous fiat currencies have experienced varying degrees of failure throughout history. The kind of failure called today failure is damaging to ordinary people like us. Wouldn’t you think?
Voltaire, the French Enlightenment philosopher and writer in the 1700s, had various perspectives on economics and currency. Voltaire was critical of the excessive power of governments and their potential to manipulate currencies for their benefit. He believed that governments tended to debase currencies by increasing the money supply, leading to inflation and loss of value for the people. He famously stated,
“Paper money eventually returns to its intrinsic value—zero.”
He believed that without the backing of a tangible asset like gold or silver, paper money derived its value solely from the trust and confidence of the people. If that trust were eroded, he argued, the currency would become worthless. For this reason alone, in my opinion, you should get some gold.