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Posts tagged with gold

Why is gold considered a hedge against fiat currency? If the monetary system collapsed — as in, the USD or the GBP or the JPY were no longer accepted in exchange for goods — are you absolutely sure people would accept Gold as a substitute?

This is not gold coins minted by a current government — it’s gold bars, gold bullion, or gold coins from some historical government (like, Spanish doubloons).

Gold, just exactly like fiat currency, is worth something just because other people think it will be worth something.
So if that’s the case — then why is gold considered a hedge against inflation?

Why is gold considered a hedge against fiat currency? If the monetary system collapsed — as in, the USD or the GBP or the JPY were no longer accepted in exchange for goods — are you absolutely sure people would accept Gold as a substitute?

image

This is not gold coins minted by a current government — it’s gold bars, gold bullion, or gold coins from some historical government (like, Spanish doubloons).

Photo detail

Gold, just exactly like fiat currency, is worth something just because other people think it will be worth something.

So if that’s the case — then why is gold considered a hedge against inflation?

image


hi-res




What a load of illiterate dummies dependant on being told what to do by the “nanny state” get a life and learn to use your mind to analyse things, learn what is the difference between MONEY and currency… Know what it means to be ethical in all your dealings, have high moral standards, believe in fair reward for fair effort/work and APPLY those principles and guidelines in everything you do in life….




There is a rusty old bridge over a narrow finger of Lake Kivu, which separates Rwanda from the Democratic Republic of Congo. Walking across it is like taking a journey across two Africas…. On the Rwandan side…freshly painted cubicle…computers…worker bees…. The streets are safe. The street lights even work….a small miracle, especially remarkable because of Rwanda’s recent genocide…and its … lack of resources. …[T]his packed little country is definitely not a land of plenty.
Lake Kivu
And then on the other side of the bridge is Congo. …a riot of dazzling colors, loud music, drunken border policemen, and … every imaginable kind of fruit and vegetable…. The soil here is some of the most fertile on the planet. And then there are the minerals, Congo’s seemingly limitless supply of them—gold, diamonds, zinc, nickel, cassiterite, copper, cobalt and coltan, old-school and modern gems. But … for the past 12 years and counting, Congo has been the theater of one of the worst civil wars in modern history, a truly continental disaster that has sucked in many of its neighbours … a festering wound in the green heart of Africa.
Goma, DRC
How could this be?