Money needs to be stable. In order to be stable, it needs to meet these 7 characteristics.
(1) It must be durable, which is why we don’t use wheat or corn, or rice.
(2) It must be divisible, which is why we don’t use art work.
(3) It must be convenient, which is why we don’t use lead or copper.
(4) It must be consistent, which is why we don’t use real estate.
(5) It must possess value in itself, which is why we don’t use paper.
(6) It must be limited in the quantity that is available, which is why we don’t use aluminum or iron.
(7) It should have a long history of acceptance, which is why we don’t use molybdenum or rhodium.
Only GOLD and SILVER fit all seven characteristics.
EVERYTHING else is inferior which makes them credit. They are essentially Gold substitutes.
If you had a race to see who was the fastest man in the world there can only be one winner and ONLY ONE person can hold the label of the fastest man in the world. It doesn't mean that the rest are slow it just means that they are not the fastest.
Value is ultimately determined by the person holding the money. "He who has the Gold makes the rules."
This will matter when trust in the USD and other fiat currencies is lost. The monetary system will "reset" back to Gold and Silver. [sound money]
The real question is what the big brains will set the price of gold and silver at in relation to goods like gas, milk, cars, and houses.
You hold the true currency, so you have a large say in the cost. Haggling would be a thing since you hold what they want ultimately. Unless a newcurrency backed by gold comes out- then it would be tied to that mostly.
Because it is MONEY. Its value comes from its stability and its stability comes from having the 7 characteristics above.
It is used in electronics.
It is still a store of value. Just not legal tender.
Absolutely retarded take. Congratulations.
Over half those things do not apply to gold or silver.
But whatever... I'm going to start treating you goldbugs the same way I treat the vaxxers.
Just do it... make yourself happy. Knock yourself out.
BUT, when the SHTF... you can absolutely go fuck yourself and your worthless metal.
We have thousands of years of history to prove our point. We don't need your approval. https://www.bnnbloomberg.ca/venezuelans-break-off-flakes-of-gold-to-pay-for-meals-haircuts-1.1669056
Just look at the Fiat Dollar. Does it say anywhere that it is Money? NO. Its a Federal Reserve Bank Note. Its basically Credit. Your Life energy translated to a Number in the Ether.
when you hold the metals that have passed the test of time, that is where the real "Money" is. That's where the real value of anything has been stored.
I believe a better term for each dollar in existence is debt.
It’s literally credit, and one that starts losing value the second you get it.
People are taught that money is wealth. It is not. You trade real value (goods and services) for an IOU (money) that presumably you can trade in the future for value (goods and services).
gold isn't that convenient for electronic transactions
You would trust your gold with a bank?
Sure it is. https://kinesis.money/
You can back any currency with it and make it redeemable like how the USD used to be. There is no need to carry it around if you don't want to.
Isn't this kind of solution how we ended up with credit instead of money?
No. We gave up sound money when we let them take us off the Gold standard. That allowed them to print as much "money" as they wanted without having to have the Gold to back it up.
It takes many steps for you to get to fiat from Gold.
Whenever you reach trust in credit (redeemable paper/bit) for it to be considered as good as money, you have set yourself to failure.
Because that's when the trusted party can print credit (aka "money") via fractional reserve. And whoever can print credit, will eventually print credit, and it will eventually print too much. Then either the credit system will fall or people will double down.
And there's a wealth of incentives for the credit printers to try their best to double down.
The creation of the FED was not because they wanted to print credit, but was a consequence of banks already using fractional reserve and looking for governmental protection.
Executive Order 6102 was not because of "wanted more money", but because of the credit they had already printed would bite them in the ass, from wiki:
The same with the Nixon Shock. They had already printed too much, severing the final connection with Gold was just a consequence of that.
My point is, of course they will print more if they are allowed, but the first step, acceptance redemption paper/bit being as good as money, already allow them to print. That they will try to print forever more is a given.
Kinesis is your metal held in vaults with your name on the title. The metal is 100% insured and audited independently twice a year and fully redeemable. It is not a fractional reserve or credit. It is a monetary system. It was designed to give us a way to remove ourselves from the central banking system and return to sound money. If somebody wants to keep using unbacked paper fiat that is vulnerable to inflation or hold BTC that's value jumps around when Elon Musk drunk Tweets they can do that too. Not me. :)
My point is that Gold can be easily transferred digitally if needed.
On sale right now,get it while it lasts.
"But muh precious Bitcoin!!!" 😢😢😢
If it doesn't come out of the ground, and isn't skilled labor, it ain't worth squat. Tulips? Start by planting your two lips here 😂
Honest question: how does Platinum and Palladium stack up against those seven characteristics?
Obviously they don't hit #7 even remotely like Gold and Silver do, but curious on the other six.
They are even rarer than Gold and Silver but have never been universally excepted as money and that is kind of a big one.
That doesn't mean they don't have a high value it just means they might not be as easy to trade with.
Where’s this list from? It’s missing the most important one:
fungibility
https://www.milesfranklin.com/the-seven-characteristics-of-money/
Well, he’s missing one of the most important ones. Should be in the place of “divisibility,” which fungibility includes
I think 3 and 4 may have gotten mixed up? I'm not sure how gold and silver are more convenient than lead and copper.
Gold and Silver are more limited in quantity [6]. It would be inconvenient [3] to carry around or store lead and copper to match the value that the limited quantity of Gold and Silver gives you.
Okay, that makes a little sense. I was just thinking that gold and silver are more consistent than lead and copper, and more convenient than real estate. Overall I agree with the list, maybe I'm just overthinking.
At least you are thinking. That is rare these days. lol
Corrosion and softness, which leads to wear and loss of value. The grooves around coins were originally from thieves shaving bits off coins.
now imagine. something exactly like loopring being backed by gold, and being used to trade stocks and commodities on the open market.
You can back anything with Gold. The value is in the Gold because Gold is money.
Silver has industrial use. Gold not so much anymore.
Gold to me is like paper money except I can wipe with paper.
Silver might be more valuable than Gold one day.
Gold is used in electrics. Important electronics.
Maybe you forget all the gold contacts and PCB plating used in electronics
But it’s microns thin there is almost none. It’s there to protect from corrosion. Silver is used way more as it’s a much better conductor.
Holy fuck you're a dumb ass.
ALL important electronics use pure gold. The iPhone alone has 0.034g of gold in it.
And 0.34 grams of silver… like I said gold almost not used. It’s use is very light plating to prevent oxidation. It’s not like the old days when the playing was super heavy.
I think silver's industrial use reduces the monetary aspect of the metal, gold serves as a better proxy for wealth as very little is used for industry and the rest is a store of value. The value is also the fact that holders hold it, which is another reason why it's scarce.
Average 2.2 ozt per roll of war nickles
I’ve made this point on a number of other threats. Gold and silver are great if you have a lot of wealth to preserve. However, they shouldn’t be the first or only step one takes. For those without a ton of money to purchase bullion, you can still take steps. Purchases food rations and a water filter, a stove or a generator, propane or fuel, firearms, tools, etc. If the lights go out you’re first priorities will be to heat your home and eat. After that you will need to be resourceful, and tools are a great help.
Gold and silver are largely reserves and derive their value from the demand for reserves bc other needs are more than met.