Is Gold Money ?by Guy de Simon aka deshepherd
Gold has been used and not been used as currency.
Is it money if we're not on the gold standard? Yes, in that it is the measure of value that The Bank of International Settlements uses on its account when settling the transactions of the central banks. Gold is also the principal of this private bank which holds sway over the nations. Shortly before Northern Rock and Lehmans collapsed the B.I.S. raised the reserve requirements of the banks. Banks had to shore up their balance sheets, the demand for derivatives collapsed resulting in a price crash and the credit bubble bursting. If you doubt that gold is money then ask yourself why central banks and the IMF hold gold.
Is it Currency? It isn't if one limits money to that which circulates in domestic economies. In this narrow and myopic view gold is seen as an ordinary assett carried over from a barbaric age!
Money and currency may or may not be equivalent. Compare the gold standard to our present system. Ron Paul was right: Gold is money. Bernanke was wrong because he equated money to currency.
Should one hold gold? Yes and No. On the one hand it is money and on the other hand because it is there is the threat of confiscation or enforced sale for currency, more so if the Temple in Jerusalem is rebuilt. Finally there is the moral dimension to holding this barbaric relic exemplified by the Israelites worshipping the golden calf.
How much will it reach? Sorry but I´m not a speculator: I hold it for safety and not for profit.
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