Posted on 08/12/2025 3:52:17 AM PDT by delta7
If gold were judged in an impartial court of law, the jury would find the majestic metal a superior form of money.
Fiat currency advocates would lose the legal battle and debate, and the sound money defense would rest and win the case with overwhelming documentary proof and supportive testimony.
A growing body of evidence provided by central banks, national governments and a global banking regulatory body reveals an irrefutable and long-known truth.
The bulleted evidence:
• The world’s central banks officially hold some 38,000 metric tons of gold, an all-time record according to one estimate, and around 20 percent of all the gold ever mined.
Central banks have been net buyers of the yellow metal for 15 consecutive years. The accumulation trend continues, with 378 tons of net purchases during the first six months of 2025.
Gold is being acquired and held by central banks because it is money, which was affirmed by American financier and investment banker J.P. Morgan more than a century ago.
“Money is gold, and nothing else,” declared the business baron and industrial titan during a 1912 congressional inquiry into Wall Street’s money trust.
J.P. Morgan Total central bank gold reserves actually could be higher given that some nations, namely China, are believed to underreport their official holdings. Or, they could be lower—or misassigned—if Western nations sold or leased gold reserves in recent decades to subdue the metal’s price.
• Since 2012, central banks and national treasuries have repatriated between 1,200 and 1,500 tons of gold from foreign vaults, supporting the axiom “If you don’t hold it, you don’t own it.”
Nations are bringing their gold home because domestic storage is perceived as more secure than storage abroad, particularly when the metal can be sold, leased or swapped for depreciating fiat currency.
Ongoing gold repatriations also contradict the 2011 congressional testimony of former Federal Reserve Chairman Ben Bernanke, who told Rep. Ron Paul (R-Texas) that central banks hold gold as a “long-term tradition” rather than because it’s money.
Despite their shortcomings, central bankers aren’t stupid. They wouldn’t acquire, hoard and repatriate tons of gold if it didn’t retain value better than unbacked legal tender.
Stability is an attribute of sound, trustworthy money. For banks and individuals, gold serves as a financial backstop and fallback when fiat currencies fail.
• Gold is a high-quality, zero-risk liquid asset equivalent to cash when held in a bank vault in physical form based on the Basel III accord. In short, gold remains money, even though it hasn’t been used as an international currency or in regular global trade since it was demonetized in the early 1970s.
The accord is a regulatory agreement and framework developed by the Basel Committee on Banking Supervision (BCBS), which oversees global banking standards. It was designed to restore bank stability and accountability after the 2008 financial crisis. The BCBS is affiliated with the Switzerland-based Bank for International Settlements (BIS), known as the central bank of central banks.
• Gold allows governments to create cash, reduce debt and avoid default. Financial authorities periodically revalue the metal’s official price to provide liquidity and avoid insolvency.
On Aug. 1, a Federal Reserve economist published a study of five countries—Germany, Italy, Lebanon, Curacao and Saint Martin, and South Africa—that revalued their gold over the last 30 years to retire debts and improve their fiscal balance sheets.
“With public debt at high levels, some governments have begun to explore financing additional expenditures without raising taxes while also not increasing public debt outstanding,” reads the introduction to “Official Reserve Revaluations: The International Experience.” “One possibility is using proceeds from valuation gains on gold reserves, as has been floated in the U.S. and Belgium recently.”
The central bank wouldn’t authorize such a study if gold revaluation wasn’t a viable option of consideration. Gold revaluation confirms gold is money whose official price has been restricted below its true value by government mandate.
• With its recent price rise to $3,400 an ounce, gold is the second-largest reserve asset held by central banks after the U.S. dollar. Combined with strong gold demand, the development indicates depreciating dollars, euros and other fiat currencies are being exchanged for appreciating gold. A wise decision given that gold has a natural and inverse correlation with devalued digital and paper currencies.
The verdict: Gold is money, and the evidence proves it is sound and superior money.
They aren’t buying Bitcoin, E coin tulip bulbs….
IBTS
IBTG
Just think of central bank’s clients as the same people who are clients of the government.
Those people aren’t us.
Gold is money, everything else is credit. (when I say gold, I mean gold/silver).
Most everybody do not realize the extent of the battle in the history of the USA has been between hard money and “elastic” money. Between a stable money supply versus boom-busts inflation-deflation economies.
Much blame for business cycles and ALL our wars can be blamed on central banking (aka, central bankstering). From the First Bank of North America, First Bank of the United States, Second Bank of the United States, to Jekyll Island/FED. There were very few, if any, years of clean banking and money in this nation - a bit from Jackson, some attempts by Lincoln, JFK. And, now Trump (work in-progress).
Gold is money, everything else is credit.
————-
Exeter’s Pyramid. Fascinating explanation, the “ original “ by Exeter and today’s revised Pyramid. ALL of the world’s financial crisis’s are explained by it. One look at today’s “ investment’s” show how we stack up, it’s time, again.
https://sdbullion.com/blog/financial-crisis-protection
The sad part, today’s “ investors” have never heard of Exeter ( but the world’s Central Banks have)…. best for the youngsters to gain some Wisdom and Knowledge.
The verdict is in, eh? Which court? I hope I’m not arrested for using these $USD i have stashed away here and there. That would be a problem for me! 😃
Read up on Exeters Pyramid, all your questions ( and misconceptions) will be answered. Gold, cash, equities, all explained….Risk is the key….due note the dollars you hold dropped in purchasing power by 11.7 percent since January….today 98.5…
Paper currencies are for spending, can’t do without it, but note PM’s are for wealth accumulation and preservation….as we are witnessing.
As of today, YOY, USD down 11 percent, Gold up 36 percent in dollars, Silver up 36 percent in dollars.
God gave us the ability to Reason. Use it. Holding ( accumulating) debt instruments ( USD) that is losing value every day makes little sense.
The road to Prosperity is built on Awareness.
“( Central Banks) are buying Gold in historic amounts, maybe they know something.”
Russia is selling. What is it that they don’t know?
“They aren’t buying Bitcoin, E coin tulip bulbs….”
LOL
You have been saying that since it was $5.
“Exeter’s Pyramid. Fascinating explanation, the “ original “ by Exeter and today’s revised Pyramid. ALL of the world’s financial crisis’s are explained by it. “
I thought all cycles were explained by Socrates’ Pi × 1000 / 365.
“Read up on Exeters Pyramid, all your questions ( and misconceptions) will be answered.”
I would argue that the pyramid is probably wrong today with regards to gold. I’d argue, that in a true fiat system, the nation or nations with the largest output backing its currency or currency system is the global safe haven. And I think recent history proves this is true. After all, when the sh*t really hit the fan in 2008 it wasn’t gold that rallied. It was the USD relative to other currencies as well as US government debt. Gold, on the other hand, actually declined by 20%+ at points during H2 2008.
https://www.pragcap.com/exters-defunct-pyramid/
last time i tried to use gold as money was when i tried to feed a dollar’s worth of goal into a Coke machine, and it didn’t work ...
no better luck at Ace Hardware, Kroger, Walmart, Costco, Sam’s Club, amazon, paying for any utility, paying the IRS, paying State income tax, paying for house and vehicle insurance, or registering vehicles with the county ... after that, i gave up on gold and went back to using worthless dollars ...
goal = GOLD
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