What a croc.....”no longer considered a form of currency...” By whom? Only governments that want to keep the value of their fiat currencies.
Why then is China buying so much gold? Banks? Others? Why is the price of gold UP?????
Because THE WORLD still values gold as currency........
So they can sell it to YOU !!!
I’m not sure about that. Salt used to be used as a currency. Gold prices go up and down like oil, silver, coal, milk, wheat, etc.
It is worth noting that ancient civilizations such as India and China that have been around 5,000 years still value gold highly. They have a long-term historical perspective quite different from ours, including the preservation of wealth. An ancient gold coin dug from the earth still has intrinsic value even before considering any archeological value. I predict that greenbacks and bitcoins will be unknown, much less valued, in 5,000 years.
Gold is real MONEY. It has intrinsic value. The dollar and looney are currency. They are backed only by faith and fairy dust from their respective countries of issue. The exchange rate between currencies and real, tangible monetary assets floats depending on the perceived value of the currency against the stable value of real money. Currencies devalue as more units are printed against the backing "value" of the national economy. The USD is being printed at a rapid rate and its value is falling since the economy behind it is also failing.
Governments are devaluing currency as a means of devaluing the debt they hold in that currency. They hope to render the debt obligations worthless while planning a new currency pegged to gold or other real money. Unfortunately, the amount of debt is many orders of magnitude too large for this strategy to succeed.
Yes, but more accurately Gold is MONEY, according to the St. Louis Federal Reserve Bank. CURRENCY as a medium of exchange, yes, but sometimes currency isn’t really MONEY.
https://www.stlouisfed.org/education/economic-lowdown-podcast-series/episode-9-functions-of-money
Well, actually they make the case that $20 bills are better money than cattle, but really they are making the better currency case (medium of exchange). Fiat currencies aren’t money, according to the characteristics the Fed puts forward themselves.
Characteristics of MONEY (according to the Federal Reserve)
Durability
Portability
Divisibility
Uniformity
Limited Supply
Acceptability
Gold and silver meet all these characteristics. Fiat currencies don’t (particularly the Limited Supply characteristic), imo.
“Because THE WORLD still values gold as currency........”
Yep. Pretty sure if I offer a contractor, or limo driver, or even my tax accountant gold coins for their services, they would gladly accept it. I guess you could say that is just barter, but those same people wouldn’t accept a goat or a coupon for 10 foot massages :)