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The 8 reasons why gold is real money.
During the period when Ben Bernanke was the chairman of the US Federal Reserve, he said in one of his reports that gold was not money.
In this article are specified the reasons which clearly show that gold should be considered real money. As it turned out, Bernanke was wrong! For sure, as economist and professor at Princeton University, he knows and understands the role and function of gold in the economy. But apparently, there were other strong reasons for this statement.
According to the monetary theory, money must carry out three basic functions:
1. A store of value
2. A medium of exchange or payment
3. A unit of account.
Gold applies these three functions, and this means that gold is real money. Moreover, the yellow metal carried out all these functions for thousands of years and continues to carry them out today.
Gold is money! Here are the 8 reasons further explained:
1. Gold can be easily exchanged in every country of the world on paper money. It is known and recognized around the world, and it’s liquid. The function of medium of exchange or payment is met.
2. Gold can be cashed in any currencies of any country at official rate. Thus, the metal meets the function of unit of account.
3. Gold maintains the purchasing power of customers for a long time, as none of other circulating currencies in the world. Thus, the function of store of value is also met.
4. Gold is money because it is a part of the reserves of Central Banks in every country.
5. Gold is trusted by ordinary people, and this reason is one of the most important. In all conditions and crises, its price does not fall to the zero value, so gold is not depreciated.
6. Gold is protected as paper money.
7. Gold is extremely difficult to fake, unlike paper money.
8. Gold was considered official money until the abolition of the gold standard in 1971. But it was only a political cancellation; the monetary function of gold remained the same
In conclusion, the advantages of gold can be seen not just by experts.
All the customers of the international company Emgoldex believe in gold and are convinced that gold is money, which is confirmed with the growing number of customers in the online store of the company worldwide.
Share this interesting information in social networks, and let your friends know why gold is real money!
Category: Gold news Publication date: 2015-01-05 16:35
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