Gold is durable because it doesn't corrode or tarnish, and it's chemically very stable. Gold can always be used as a currency because its value will never depreciate. It will always maintain its value, which is why people invest in gold. Gold is one of the best stores of value in human history, making it an ideal choice for a Best Gold IRA rollover.
However, it's certainly not money. Gold is a form of currency like any other and, as a currency, it shares the same risks of inflation, degradation and other government shenanigans faced by major currencies, such as the dollar. For those who are still interested in the idea of using alternative currencies to buy things, services such as BitGold offer a convenient and safe alternative to incomplete products such as BitCoin. Gold and its sister, silver, have always been the basis of money, since the beginning of “money”, at the end of the fourth millennium BC. Already in 2000 a.
C. Gold was still the basis of money in the 1960s, in an uninterrupted line that dates back to the beginning of history. It's easy to see that “supply and demand problems affecting copper and wheat have no effect on gold.”. The mine's annual supply could be doubled or halved, with little overall effect.
And God created the two precious metals, gold and silver, to serve as a measure of the value of all commodities. Because other goods are subject to market fluctuations, to which they are immune. Therefore, gold becomes the best measure of stability in monetary value. Certainly, no one — not even Mill — argued that Gold's performance in this role was perfect.
However, after centuries of experience, we can say that gold's deviation from this perfect ideal was small enough that it didn't matter much. It was good enough that there was no need to find something better, even if I could, which no one has ever had. The “problem” with gold today is not that it has somehow failed in its role as a measure of stable value. The “problem” is that many people no longer want their money to have a stable value.
They want to play with him. This is true for today's central bankers, and also for those whose “rule-based” systems are not aimed at achieving stable monetary value at all. This is a counterproductive game, counterproductive for the people as a whole, at least, although it can be very advantageous for the elites, both in terms of benefits and political influence. When you see that gold is simply a measure of value, you don't have to pile it up in vaults.
In fact, it is the abundance of gold — the accumulation over decades and centuries — that helps it fulfill its function. John Stuart Mill understood this 170 years ago. We would do well to remember this today, as the “return to normality” of our current monetary arrangements seems to be disappearing more and more. BitGold is an example of a promising proof of the concept that gold can still be used as a viable currency (among others) in modern times.
Therefore, not only does gold have all the qualities of a good form of money, as Aristotle put it, but it also has two other important related qualities, recyclability and supplyability, which make it an even better candidate. The rise in the price of gold is a signal for producers to start producing more, in anticipation of obtaining additional profits at a higher price. The ratio between gold support and physical metal can be constantly adjusted downwards, creating essentially the same effect as printing regular money. My conclusion is that gold is best used as a tool for short-term speculation and has limited value for long-term investors.
Gold is “scarce” in the sense that it is difficult to find and is available in very low concentrations, meaning that a large amount of rock must be processed to obtain it. Fungibility, an underappreciated feature, is essential to allow monetary metals to offer interest on gold, paid in gold. We all agree that gold is a store of value, but there is also a fundamental question of whether gold is money or not. This is the main reason why the support for gold was withdrawn from so many currencies at the beginning of the 20th century and will never appear again.
BitGold is a product created by GoldMoney that allows investors to buy physical gold online with a difference of 1% from the current price of bullion. From this point of view, any price of gold above its cost of production represents a premium and a price below this sum represents a discount. The problem is that gold-backed currencies, especially those that can be exchanged for physical metals, encourage the accumulation and sequestration of money from the economy. These criteria are a good starting point, but there's more to good money, and gold has all those properties.
You'd better believe that when the CEO of GoldMoney receives his paychecks, they're denominated in dollars, not gold. . .