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James Cook - February 3rd, 2023
Gold and Silver money might be the future, like it or not.
For decades gold bugs and silver stackers have been mocked by finance institutions and their armies of advisors. The same institutions, by the way, that stockpile gold and silver and frequently use the commodity to cover losses in the stock market. They might have to eat their words though as they so frequently have had to do in the past.
Prior to the Great Depression and subsequent legislation that followed, the U.S. dollar was backed and redeemable by gold and silver bullion. This was until 1933 when Executive Order 6102 was signed into law and all citizens were required to turn in their gold and silver bullion coins, bars and certificates to the government.
Since that time, we have seen the year over year inflation rate more than double, with some single year inflationary events increasing by nearly 8 times the average from 1800-1900. Obviously. This allowed the Federal Reserve to print money and more recently create digital USD out of thin air at their whim which has exacerbated the situation in more recent years.
So, is the gold standard coming back?
It looks like it.
Only this times it’s being created as an international currency by BRICS, which is an economic alliance between Brazil, Russia, India, China and South Africa among other non-NATO countries. China and Russia being the primary architects of such currency. This has actually been a long time coming, we even reported on Russia’s President Vladimir Putin increasing Russia’s gold stockpile by 71% over this last decade. Jointly, both super powers are estimated to have over 3000 tons of the shiny precious metal with China purchasing 80 tons from Switzerland just last month, according to customs data.
Sources such as the large cable networks and mainstream media are reporting SWIFT data which concludes that 76.6% of money traded for fiscal year of 2022 was done in either the U.S. Dollar or the Euro. With all of them echoing this exact phrase verbatim, “The USD remains the safest, most convenient and most widely used currency in Asia and in the world today. No other currency (backed by gold or otherwise) is comparable, and that is unlikely to change in the near future.” OK!
Old British Gold Sovereign coins.
Why go gold?
Governments don’t like the gold standard because they can’t manipulate their currency as easy which can be beneficial for a country but also have nefarious uses as well. Either way, a currency that is backed by, and redeemable for, a tangible thing, especially gold and silver which has been revered by humans from the start of recorded history, is strong. But is it strong enough to break the U.S. dollar as the global reserve currency and petrodollar? Maybe internet virality could make it so, because reports suggest this gold backed currency might be in the form of a digital “stable coin” or cryptocurrency.
Bitcoin, another thing those financial advisors mocked and joked about, went to over a $1 trillion dollar market capitalization in a few short years. It’s insanely accessible to everyone and the transaction gateways already exist. This gold backed cryptocurrency could be a total flop, but it could also topple the U.S. dollar and that is alarming.
Thanks for reading guys! Keep on stackin'!
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I can’t see precious metals ever being used as standard currency again.
I will hoard the gold and silver coins.
I have no problem with it!
Sounds fun.
Another day another Gold dollar.