The Library: Why Gold?

20070927_1190879567_$10_capped_bustActually, it is difficult to envision in this regard any other criterion, any other standard than Gold. Yes Gold, which does not change in nature, which can be made into either bars, ingots or coins, which as no nationality, which is considered, in all places and all times, the immutable and fiduciary value par excellence.” – Charles de Gaulle

The answer to the title question is simply: “Why Not?”

Precious metals will always be the world’s reserve currency. Even though nations do not define their currency by their worth in, say, gold, individuals will still buy gold to protect themselves from inflation. The more money a nation’s central bank pours into the economy, the less valuable its currency (the dollar) is, which means the price of everything else rises. Seeing that the dollar is cheap, many individuals start to distrust the national economy and instead of investing in dollar-making opportunities like business expansion, they will buy gold.

20070927_1190880954_GroupOfCoins_M“It is extraordinary how many emotional storms one may weather in safety if one is ballasted with ever so little gold.” – William McFee (1881-1945)

The following series of articles, columns, historical documents and speeches may in fact provide the answers you have been looking for. Continue to the Library