Gold is King and Cash is Trash

in gold •  5 months ago

For most of human history, gold has been money and wealth.

Up until the early to mid 1900s, paper currency was a representation of gold or silver, but it has since morphed into something else.

As long as people accept cash as payment for goods and services, it represents value.

Unfortunately, today's paper currency isn't backed by gold, silver or anything else of value. It can fluctuate up or down - but mostly, over the last 100 years, it's be fluctuating down - and is zero bound.

And even if paper currency is backed by gold, if the backers (governments and banking system) fail, then you're left holding the bag. Or at least, with a bunch of currency and Elmer's® glue, you can make yourself a bag.

If you do a little research on the history of US currency and money, you'll discover that we did use paper currency that was exchangeable for gold and silver at the bank or treasury. At least some of the later gold and silver notes or certificates are still legal tender and can be spent at the grocery store for their face value. But the government decided that they would stop honoring the exchangeability.

For gold certificates, this is what was published on the US Treasury's website...

"Gold certificates were withdrawn from circulation along with all gold coins and gold bullion as required by the Gold Reserve Act of 1934. Gold certificates circulated until December 28, 1933. That is when the President ordered private owners of gold certificates to deliver their notes to the Treasurer of the United States by midnight on January 17, 1934."
Source:
https://www.treasury.gov/resource-center/faqs/Currency/Pages/edu_faq_currency_sales.aspx

AND - From the US Government and US Mint's official website...

Source:
https://www.usmint.gov/learn/history/historical-documents/treasury-publishes-procedures-exchanging-silver-certificates-for-silver-bullion

Most people today have never noticed any major changes in the money they earn, save and spend. They don't know the history of money and have no clue as to how the banking and financial systems work. Therefore, most people (especially in the United States, in my opinion) don't understand the real value of gold and how it is used as a store of value and true wealth. So, most people are not overly concerned about what might happen to their currency in the months and years ahead. Does "normalcy bias" ring a bell?

To summarize the point...

Gold was created by nature, likely from supernovas (as in when stars explode!)

Gold was created before humans. Gold has been valuable for most of human history. It is valuable today, and will likely be valuable to humans, as long as humanity exists. The value of gold has no bounds. Not bounded by governments, cultures or geographic location. Gold holds "stored value" and is useful in jewelry, money, electronics, pharmaceuticals and more.

Cash / Currency / Fiat Money is a human-made creation. Currencies rise and currencies fall. Currency only has value as long as people have faith and confidence in whatever currency we are talking about at the time, often constrained and controlled by governments, geographic regions, cultures or countries.

Once a currency is totally devalued or fails, it could best be used as fireplace kindling.

And that is why - Gold is King and Cash is Trash.

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  trending

I for one was brought up in the brainwashed 80s culture of consumption and no knowledge of the financial struggles of the past , only a worship of cash and platitudes about George Washington and how the u.s. Is the best thing ever... Know history or relive it

Cash is what the government says you must pay your taxes in, however. While we may be living in the same era as 1933-1971, when gold was outlawed, and we have the "soft" version where the price of gold is manipulated in favor of the US Dollar, gold is still multi-generational savings.

Cash is just fiat-currency-of-the-day. Gold is forever.