Gold is money and nothing else - JP Morgan, testifying to the Pujo Committee, 1913
As JP Morgan pointed out early last century, gold is money, and nothing else. Grasp this simple fact and you understand gold. More to the point, gold is international money. It always has been. Over thousands of years of human economic interaction, gold (and silver) evolved as the chosen medium of exchange. These two precious metals contained all the qualities necessary to facilitate growing trade and economic interaction. The most important quality of course was man’s inability to create the metals out of nothing. Alchemists tried, but to no avail. This inability to manipulate supply made the metals perfect for the role of money.
Despite the efforts of governments and central banks around the world, gold has not gone away. It is still money.
Gold is rising because the international monetary system, with the US FRN$ dollar at its core, is in the process of breaking down. Decades of unfettered credit creation by the global banking system, led by the US, is now beginning to implode.
Gold is being swept off the market by millions of individuals who know that without fail governments always ruin the value of their paper money. Governments have always resented gold because when freely traded, its price tells the story of bureaucratic ineptitude.
Gold Outperforms Cash
Tags: Economy, Gold, money, Precious Metals
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