Published: 2021.10.27. Gold and silver will outlive humanity
Gold is eternal, and its chemical and physical properties are suitable for making perfect money out of it. Gold is a rare metal that is highly prized in many ways. Therefore, it has intrinsic value. It can be formed and divided at your discretion into parts. However, it is practically indestructible.
Of course, even in prior centuries, legal tender has been counterfeited on numerous occasions to create more liquidity in the short term than (natural) law envisaged. Silver and gold coins were filed to obtain additional pieces of precious metal as a result of abrasion. Gold and silver items have been forged at all times. Later, they began to issue receipts for the storage of precious metal. And suddenly there were more receipts than physical gold. The first form of bank fractional reserve was created as we know it today.
Time and time again we read reports of the discovery of ancient gold and silver treasures. More recently, a huge silver deposit made a splash when it was found during excavations in Augsburg. 15 kilograms of precious metal from the times of the Roman Empire. Professional seekers are pleased that they have been able to learn "new information about the life of the Romans in Augsburg."
However, for many experts, these findings are a very important signal. Although the state treats old coins as museum pieces, they witness the preservation of the value of the only imperishable money. Find savings accounts or treasures with the wealth of bygone eras. In addition to the collectible value of these antiques (old Roman coins still exist in abundance), they retain their material value. And, as we know, today you can buy the same amount of goods for the same amount of precious metal.
However, society is so used to creating money out of thin air that many people have ceased to recognize true values. Gold is often viewed as a silly anachronism in the digital money age.
Today money is money because the sovereign entity (the state and the Central Bank) declares it to be money. And the value of that money is painfully eroded these days. Printing more and more money allows you to buy things on credit that would no longer be available without the miraculous multiplication of money. What at the same time increases in parallel, if you overdo it, is the zeros on the banknotes. This is called inflation, and in central bank circles it is sold to us as a natural process in our modern monetary system. After all, little inflation has never hurt anyone and is helping the economy grow.
This is short term thinking, but there is no alternative. In the end, this will be paid for by the depreciation of the exchange rates. Then other, new money is simply declared a means of payment, or a few zeros are removed from the old currency. Future generations may stumble upon gold Krugerrand coins or bullion while excavating, but in general, nothing will be left of our current paper money system in the end.