Fri 25 Nov 2005
Gold has been a preferred money for a long time
People have used all sorts of things to represent value through the times, such as stones, salt, cattle, and seashells. Whenever Gold was available it was the preferred money.
The properties of Gold that make it suited for money
- It is durable. It won’t evaporate, mildew, rust, crumble, break, or rot.
- It is divisible. One ounce of gold-whether bullion, coin, or dust-is worth exactly 1/100th of one hundred ounces.
- It is convenient. Gold allows its owner physically to carry the wealth of a lifetime with him. Real Estate is difficult to carry.
- It is consistent. There is no danger of owning 24-carat gold varying in quality.
- It has intrinsic value. Gold have many properties that make it suited for use in the industrial world.
- Gold cannot be created by government. Unlike currency, gold cannot lose value because of