Gold is real money. Paper money, on the other hand, can be manipulated; gold has stood the test of time as money you can trust. In today’s economic environment, gold may be the only safe haven to protect your wealth from the ravages of future inflation. It is important for people to buy gold bullion as an investment asset.
There are two levers of power that governments will never think of giving up – and they are:
The state controls education. It is mandatory. They teach what the state orders.
The state issues money.
This is called fiat money – money that has no value except that the state has declared it legal for all financial transactions and obligations. The state then retained a monopoly on precious metals to issue this fiat currency – ensuring that it could be manipulated to its advantage.
Let’s talk about government fiat money and how it has become a tool of economic slavery. Fiat money is money declared by arbitrary decree or government decree.
Government fiat money is the end result of the evolution of money as we know it. And it can be briefly summarized as follows:
Historically, various goods functioned as money – that is, as a medium of exchange. Gold has also functioned as money. Gold used to be a common valuable asset that banks kept in their vaults. It is not just banks and other institutions that buy gold bullion but anyone can own some gold to diversify their portfolios.
Today we still have banknotes – but they are mostly issued by the state’s central bank. The connection between gold and banknotes was severed with the abolition of the gold standard in the early 1930s. The value of the notes you use every day is arbitrarily determined by the state and its ability to prohibit any monetary competition. The basis of state power is the monopoly on issuing what we use as money and the state’s ability to determine its value. With this power, the state can literally manipulate the money supply for its own purposes.
There are many proposals for maintaining a free market monetary system – one in which the government has no control over the money in circulation. Some of them are very interesting and others have a bland effect on them. However, there is a way to do this based on historical experience and proven results. And that’s back to using gold in one form or another.
Here’s what we know for sure about gold in each country’s economy:
Gold is not created by the government. Gold is not inflated by the government. Gold has intrinsic value. Government fiat money does not exist. And gold has stood the test of time as a reliable medium of exchange. Additionally, the modern digital age has created a way to handle gold without having to carry it in your pocket.
Gold is naturally valued against various fiat currencies, particularly the US dollar – and as a result, its value fluctuates daily. Recently, this fluctuation has generally increased as the value of gold continues to rise relative to the paper money of the world. This is another way of saying that fiat currencies are less reliable than gold. Gold is also a financial refuge of last resort. When the financial world begins to shake and worry, people rush to gold. Why? Because they know that when the value of paper money falls – even to zero – gold will retain its value.
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