Under a free market system, gold is a currency. Gold has a price, and that price will fluctuate relative to other forms of exchange, such as the US dollar, the euro and the Japanese yen. Gold can be purchased and stored, making it an ideal option for those looking to invest in a Best Gold IRA rollover. Gold has always played an important role in the international monetary system. Gold coins were first minted by order of King Croesus of Lydia (an area that is now part of Turkey), around 550 BC.
C. Gold is universally recognized and accepted as a form of payment. We know this because if tomorrow the United States government stopped paying all its debt and simply stopped paying anything, the dollar itself would continue to function as a substitute for gold (assuming there is gold in Fort Knox, of course). Governments force it to use its specific substitute for gold because these substitutes for gold, insofar as they are still substitutes for functioning gold, already have value and want to extract this value from them through inflation.
Memorandum from the Bank of England, with updated estimates of French, Belgian and Polish gold stocks at the time of the German occupation. Excerpts from the correspondence of William Pulteney, 1st Earl of Bath and MP from 1705 to 1742, to James Craggs, Secretary of State for Southern Affairs from 1717 to 1721, on the state of the gold coin in France. Tesoro, about the reopening of the London gold market for the first time since the outbreak of World War II. A revised draft of a “top secret” document covering the position of the British Government regarding the functioning of the London gold market in the event of a devaluation of the British pound.
As a substitute for the dollar, the source of Bitcoin's value depends entirely on the dollar's continued functionality as a substitute for gold. Hundreds, if not thousands of years, passed from a single bartering hub to an increasingly large and complex economic order based on an increasing range of free market prices denominated in gold and silver pesos. At the end of the 19th century, many of the world's major currencies were fixed to gold at a fixed price per ounce, according to the “Gold Standard”, and this persisted in different ways for about a hundred years. To truly and truly remove the dollar from the gold standard would be to completely destroy the dollar as a functional substitute for gold, destroying its market value.
A series of prices for goods and services began to develop in terms of gold and silver, and the junction point of the monetary regression chain of all monetary prices to this day found its origin. Therefore, these documents are a valuable resource for researchers seeking an even deeper knowledge of the history of money and gold. Not because gold and silver are not money, but because legal tender laws require that only a specific substitute be used for gold, which the government has the privilege of issuing through fiduciary force. Roosevelt prohibits the hoarding of gold coins, gold ingots and gold certificates, and requires that they be handed over to the Federal Reserve Bank.
Document published by the Statistics Section of the Bank of England and entitled “Conditions under which the Bank of England buys bar gold”.