The Benefits Of Investing In Gold

Gold is an investment with many benefits. One benefit of investing in physical gold is the low to no maintenance cost. Gold unlike many other investments can be kept without paying any additional funds. If you have your own safe, keeping the gold is basically maintenance free. Another benefit of investing in physical gold is the low risk compared to other investments. Gold has intrinsic value and will not become worthless because of mismanagement or a company going out of business.

One other benefit of investing in physical gold is the privacy of gold compared to other investments. In most nations you don’t have to disclose how much physical gold holdings you have or where you store your physical gold. By having a private investment like gold the risk of it being confiscated because of a change in law or any other situation, is lower compared to other investments.

One last benefit of investing in physical gold is its ease to liquidate. Most places that sell gold usually also buy gold. Another reason why gold is easy to liquidate is the fact that the spot price of gold is easy to find out at any given time. The spot price usually can give buyers and sellers a rough guess if their getting a good price or not. An investor can also do research on a specific gold coin or gold bar to know the current fair price for the item. Physical gold not only is a safe investment, it is also an investment with a lot of benefits.

Can Gold Become Worthless

To answer the question can gold become worthless; it is important to understand the nature of wealth and value. The essence of wealth is desired work. If a person’s only wealth was currency, but no one was willing to trade any services (it takes desired work to perform services) or trade any goods, (it takes desired work to produce or cultivate goods) for that currency, as long as that person isn’t willing to do any desired work; or as long as anyone isn’t willing to do any desired work for that person, that person has no wealth. On the other hand if a person had no currency, but people were willing to perform services or give goods to that person, as long as people are willing to do those things; or if that person did do desired work and traded it, that person has wealth.

The nature of value is subjective and not objective. Just like beauty value is in the eye of the beholder. One person can look at a product and see it as too expensive. In that case that person values the money it takes to buy the product more than the product itself. On the other hand if another person looks at the same product and sees it as a good deal; that person values the product more than the money it takes to buy it. Since people’s views and perceptions can change at any given time, their value of something can also change at any given time.

Gold’s value like any other product is in the eye of the beholder. There are a number of reasons why gold was and is valued by many cultures and individuals. Some of these reasons are gold’s durability (gold does not rust or tarnish), gold’s beauty (gold has a distinctive color), gold’s rarity (gold is rare enough to be used as money but not too rare to make it impractical), gold’s weight (gold is dense and hard to counterfeit), gold’s uniformity (pure gold is the same no matter where or when it was mined), gold’s fluidity (gold cam be made to be any shape and can be divided or combined), gold’s ability to hold wealth (gold has held wealth for over six thousand years).

These qualities and many more are some of the reasons why people value gold. To answer the question can gold become worthless; anything can become worthless if no person is willing to do or trade desired work for it. Gold with its six thousand year track record and the fact that no civilization that accepted it ever turned around and then rejected it; shows that gold becoming worthless is highly unlikely.

The Different Categories Of Gold Coins And Gold Bars

The different categories of gold coins and gold bars can determine the price of the physical metal. The categories can be differentiated by several factors. One factor is the way a coin or bar is manufactured; another factor is the rarity or what circumstances a coin or a bar has been through. The first category of gold coins is gold bullion coins. Gold bullion coins are gold coins that are usually a little above the spot price of gold. Gold bullion coins are the best way to buy the most physical gold for your money in a coin form.

The next category of gold coins is numismatic gold coins. Numismatic gold coins are coins that for a number of reasons are worth significantly more then its weight in gold. Some reasons can be the way the coin is manufactured, the age, the circumstances the coin has been through or the rarity of the coin. Gold bullion coins can also become numismatic coins over time depending on its age, rarity or the circumstances it has been through. The last category of gold coins is proof gold coins. Proof gold coins are gold coins that are struck with specially treated dies to give the coin a detail and mirror like finish. Some proof gold coins are even double struck to give the coin more details. Proof coins are usually collectibles and is considered a kind of numismatic coin.

The first category of gold bars is gold bullion bars. Gold bullion bars are similar to gold bullion coins in the aspect of usually being a little above the spot price of gold. Most gold bars will usually fall under the category of gold bullion bars. Gold bullion bars are also one of the best ways to buy the most physical gold for your money in a bar form. The next category of gold bars is ingots. Ingots are gold bars that are manufactured by pouring molten gold into a mold. Ingots can come in sizes as large as four hundred troy ounces, to as small as one gram.

Ingots that are one to twenty grams are usually known as chip gold. Chip gold usually comes in a credit card like seal to make it easily more identifiable. The last category of gold bars is numismatic or rare gold ingots. Rare gold ingots are usually not for sale and can be found in museums. Some aspects that can make these gold ingots special are the historic significance they hold. Gold coins and gold bars are the best ways to invest in physical gold. By knowing the different categories, it can make investors aware of the many options they have.

Gold And Currency Collapse The Worst Case Scenario

There are many reasons why it’s a good idea to invest in physical gold. One of these reasons is the historic fact that gold is one of the only assets that can hold its value during a currency collapse or a systemic economic breakdown. In the wake of current events many governments around the world are creating an unprecedented amount of currency to prop up insolvent institutions. The consequence of this form of governmental intervention in the markets is not only making investors leery of these institutions, but also is one of the main reasons why every nation’s currency is falling when compared to gold and other physical assets. The essential problem with the world economy is nation’s monopolistic adoption of fiat currency and central banking. These two unsustainable practices have been so integrated and institutionalize in most nation’s economies, that the notion of insinuating that they are the cause of the problems can not be fathom.

The worst case scenario is nations with their attempts to prop up an unsustainable central banking model, will hastily collapse another unsustainable model; fiat currency. As more and more currency is created in an attempt to keep trust in the banking system, and as businesses find it more difficult to secure credit; governments will likely adopt rules for banking institutions to loan out money. These rules will apply to banks that got loans from the government. This will cause banks to loan out money that they otherwise would not have because of the economic situation. With this scenario banks that did not take any government loans will have to also make loans or take government loans to compete. This will cause inflation, and as prices of goods and services rise rapidly and more banks ask for government assistance; the trust in the currency and the banking system will ultimately collapse.

This scenario being the worst case scenario is more likely to happen than governments allowing its citizens to opt out of the central banking and fiat currency systems. Some ways governments can allow it citizens to do this is by allowing free market competition to these systems. The only way to opt out is to invest in assets that are independent of these two systems. Gold bullion is one of the best ways to store wealth independent of fiat currency, central banking or governmental institutions. In fact history has shown when all fails only things with real value remain, be it time tested institutions or assets. Extra Ecclesiam nulla salus.

What Makes Gold Unique

Gold has played a large part in human history, from ancient Egypt to the Roman Empire. The reason for this is the unique qualities that gold possesses. One quality that gold possesses is its resistance to corrosion. Gold does not rust or tarnish, this is one of the reasons why gold has and is used by many cultures as jewelry. Another industry gold is used because of its resistance to corrosion is electronics. In fact most computers have some traces of gold in them.

Another quality that gold possesses is its ease to shape. This is also another reason why gold is popularly used as jewelry. One other industry gold’s ease to shape comes into play is the striking of coins. Gold because of its softness is the main reason why some gold coins use an alloy of other metals. These other metals make the gold coin harder and more resistant to scratches. Gold because of its ease to shape was use by many civilizations to make statures and other figures. In fact most religions today use gold in some way to help with their ceremonies.

One last quality that gold possesses is its rarity. This is one of the reasons why gold was and is used as money. Gold’s rarity is unique that it is rare enough to be seen as special but not too rare to make its implementation as money, jewelry, in electronics and other applications viewed as impractical. Gold because of its resistance to corrosion, its ease to shape, and its rarity, makes it one of the most unique metals ever to be used.

Why No Stimulus Package Will Ever Work

I see from time to time talks of governments needing to spend money on various projects to help the ailing economy. The tragic part of this belief is that it allows governments to continue to practice the same policies that got us in this mess. What got us in this mess are things like central economic planning, fiat currency, fractional reserve banking, central banking, legal tender laws, over taxing and overgrown government. It is hard to imagine governments giving up some of its power for the good of its people, who ultimately are their masters. The problem is caused by governments and central banking, so there for the solution is not for them to solve. In fact all seven things I mention above that got us in this mess can be solved by governments doing less not more.

The reason why no stimulus package will ever work is the fact every time governments collect revenue and spend it, it is more wasteful and less effective than people spending it or saving it for themselves. Imagine every time you got paid your money was given to a person to spend it for you. If this person charge you for every expense plus took a ten percent fee for every product they bought for you; would this arrangement be more beneficial to you than you buying the things for yourself?

This is roughly what governments do. Governments have to pay the people who collect the taxes, the people who spend the taxes, the people who supervise them, the people who decide how the taxes should be spent and more. Even if you have a government that was less wasteful and had no corruption, it still would not be as efficient as people spending their money for themselves. Another problem is even if governments reduces its size and collect fewer taxes, it still will use fiat currency and central banking. The system of central banking, fractional reserve banking and fiat currency is unsustainable and doom to collapse. Instead of stimulus packages what governments need to do is get out of the way and allow people to opt out of these failing systems.

Why No Nation Uses The Gold Standard

There are many reasons why no nation uses the gold standard today; one of them is not that the fiat, central banking system that most nations have in place today is superior. In fact a gold standard would work better than any fiat system for the simple fact that gold back money would never become worthless. So if the gold standard is superior why no nation uses it today? You ask; there are two reasons for this. The first reason is that fiat currency gives the government the ability to inflate the currency. This in essence gives the government the ability to secretly tax its citizens through inflation. The other reason is that the gold standard alone is not enough to stop governmental manipulation of the economy.

If a nation has a gold standard and some people within or outside of government wanted it gone for their own benefit, there are three options they can do. The first option is to raise taxes; by raising taxes businesses will in turn raise the price of goods and services in order to stay profitable. The price increase would cause less goods and services to be able to be purchase at that given time. Next step is to blame it on the gold standard and say things like “we need a more elastic kind of money, to help the people of course”.

The second option is to get the government to implement a central bank. Use the central bank to raise interest rates. By raising interest rates high, people would spend less and invest less, because the better option would be to keep the money in the bank and get a higher return. Also businesses would have less income; some may even go out of business if implemented long enough. Like the first option, blame it on the gold standard and say things like “we need a more elastic kind of money, to help the people of course”.

The last option is to slow the minting of coins and printing of certificates to a stand still (in this case it is necessary for the government coins and certificates to be the only legal tender). After a while less and less money would be in the system, causing businesses to have less income and like mention be for some would even go out of business. You can guess the rest, blame it on the gold standard and say things like “we need a more elastic kind of money, to help the people of course”.

All three of these options do one thing, soak up the money supply. All a government has to do is to implement all three simultaneously and blame the gold standard to get the system that is most beneficial to them. The devious part is that most of the time the new system is even easer to manipulate than the gold backed system. With the gold back system banks have a shorter time limit on how high or low they can keep the interest rates. The reason for this is if banks keep interest rates too high for too long the bank’s gold would be paid out to the customers. If too much of the bank’s gold is paid out, the bank would start to default on the interest rates they pay to their customers and then they would most likely go out of business.

If interest rates are too low for too long less people would keep their money in the bank and the banks would take in less profits or even take a loss. With a fiat currency, central banking, fractional reserve system the banks can manipulate the economy easier by creating money out of thin air anytime someone takes out a loan. This also would allow banks the ability to keep interest rates too high or too low for a longer period of time compared to money backed by gold.

Government benefits because of the ability to grow larger without having to overtly raise taxes. If this is not bad enough, the fiat currency, central banking, fractional reserve system is not sustainable, it will eventually implode on itself when the fiat currency becomes worthless. The main reason why no nation uses a gold standard is it can be made to look bad, and governments love a system that gives them more power no matter how unethical, unsustainable or unstable that system might be.

Buying Gold Coins And Gold Bars Online

With the rapid growth of the internet buying gold coins and gold bars online has become easier than ever before. Before buying from an online dealer there are some things you should know. One thing you should know before purchasing physical gold online is the reputation and the reliability of the person or the site you intend to buy from. The reason for this is it will save you from doing business with a company or a person that has a reputation of unreliable or unethical business practices.

Another thing you should know before purchasing physical gold online is the kind and size of the gold coin or bar. It is important to carefully read any description of the gold coin or bar to make sure that you are indeed buying the right kind and size. The reason for this is some gold coins may look alike, but be different because of certain features. An example of this is proof coins. Proof coins from an online picture may look similar to its generic counterpart but one may be classified bullion and the proof coin classified as a collectible.

One last thing you should know before purchasing physical gold online is the kind of return policy if any a site may have. It is recommended to only buy gold from people or businesses that have a return policy. The reason for this is for your own safety. It is recommended to know the weight and weigh every gold coin and bar you buy online as soon as it is shipped to you. With a return policy if there is some misunderstanding, you will always have the option of a trade or getting your money back. Buying gold coins and gold bars online is relatively safe to do, but if you follow some of the things here it will become even safer.

Protect Your Wealth With Gold

Physical gold is one of the best ways to protect your wealth from any economic downturn. The reason for this is gold has a track record that spans well over five thousand years of holding wealth. Gold has the property of holding and storing wealth because it takes desired work to mine more gold. Desired work is, in essence wealth. The reason why any good or service has any perceived value is the desired work that it takes to produce, cultivate or perform that good or service. Fiat currency and anything that is backed up by fiat currency is subjected to government and central banking policies to keep and hold wealth. Since fiat currency can be created independent of desired work, usually more fiat currency will be created than the production of goods and services. When more fiat currency is created than the production of goods and services it causes inflation.

Gold being a good that takes desired work to mine has a limit on how much that can be produce at any given time. Also if more gold is produce at a given time than the growth of other goods and services, the price of gold will fall and less gold will be produce. If less gold is produce than the growth of other goods and services the opposite will happen, keeping gold’s relative value stable. Fiat currency doesn’t keep its purchasing power for long compared to gold and other precious metals, in fact history has shown that once a government unties its currency from any physical asset the currency becomes worthless in less than one hundred years.

With physical gold your wealth is not subjected to government and central banking policies, barring an all-out governmental theft of gold. If the main reason for investing in physical gold is to protect your wealth it is recommended to invest in gold bullion. Gold bullion is gold coins and gold bars that are usually a little above spot price. With gold bullion you get more physical gold for your money compared to numismatic gold coins and any other uniform forms of physical gold. Protecting your wealth from inflation or any other economic downturn does take some planning; with physical gold you will have an asset that has a track record of protecting wealth.

What Size Gold Bullion To Buy

Gold coins and bars are two of the best ways to invest in physical gold. A question that comes up from time to time is what size gold bullion to buy. If you buy bullion in small sizes you will usually pay a higher markup for manufacturing and if you buy bullion too large it will be more difficult to liquidate when the time comes.

It is recommended that you buy gold bullion in one troy ounce. The reason for this is one troy ounce is the size that’s popular with most investors. If you buy the kind of gold bullion and the size of gold bullion that is popular with investors in your area, the easier it will be to liquidate when the time comes if you ever decide to sell any of your gold bullion.

Another reason why one troy ounce is recommended is the fact that one troy ounce is the size that the spot price of gold is measured in. If you know the spot price and know the markup for all your one troy ounce bullion, it will be easier to calculate the worth of your investment in any currency. One last reason why one troy ounce size is recommended is usually that’s the largest size most gold bullion coins are manufactured in. No matter what size or kind of gold bullion you decide to invest in, the most important part is to know what will be the easiest to liquidate when the time comes.

How To Stimulate The Economy

To understand how to stimulate the economy it is important to know what some of the restrictions that hinder it. I will try my best to shine some light on the two major problems and not the symptoms. The two major problems are a centralized monetary system and a centralized banking system. There is no way to have a sustainable economic recovery if these two systems alone are in place. The major flaw with a centralized monetary system is that there is no way that the organization behind it can tell if there is too little or too much currency in the system until it’s too late. If there is too much currency in circulation, prices go up and individuals on a fix budget will usually have to lower their standard of living or go into debt to maintain their current life style. If there is too little currency in circulation, prices go down and businesses profits shrink which in turn causes layoffs.

There is a similar major flaw with a centralized banking system. With a central banking system dictating the actions of all banks in a given nation, the centralized organization can control the money supply. Some ways they can do this is by raising or lowering interest rates or reserve requirements. It is impossible to have a free market if the medium of exchange and the supply of it is control by a central organization. What should be proposed to stimulate the economy is the decentralization of the monetary and the banking system. Some ways of doing this is to allow any individual or business the ability to practice the right of issuing their own currency once it’s backed by their goods and services and valued in silver or gold. Since it would be valued in silver or gold and backed by goods and services, its purchasing power would not be so easily manipulated by the issuer. Also with this anyone should have the right to reject any currency they did not issue themselves (even government currency).

The other thing that should be proposed to stimulate the economy is to allow any individual or business the ability to start up their own bank like entity. This bank like entity should be unregulated by government or the central banking system. The only government involvement in these two activities should be in the case of fraud, which then it should be handled by the court system. Also these two activities should be tax exempt. Private currency and decentralized banking should not be forced on everyone, but the people who wish to opt out of the centralized system most nations have in placed today, should have the opportunity to do so.

What I believe would happen is the private currency would allow businesses to use their production of goods and services to build up equity and be more independent of the banking sector. Also with these more stable and independent businesses, the decentralized banks would have to compete and come up with the best and safest services to attract capital. What needs to happen to stimulate the economy is not governments and central banks involvement; but to them to get out of the way and allow individuals and businesses the ability to opt out of the centralized monetary and banking system that is the root of the problem.

Is Gold A Safe Investment

Gold is one of the safest investments out there; the reason for this is gold has intrinsic value and will not become worthless because of human error unlike a stock. In fact gold coins and bars still retain value even when the organization that minted it goes out of business. Physical gold unlike other assets does not take any additional funds to maintain if you store it yourself. Also some gold coins can build numismatic value over a period of time.

Another reason why gold is a safe investment is gold’s ability to protect wealth from inflation. Since it takes desired work to mine more gold there is a limit on the amount of gold that can be added to the gold supply at any given time. Other assets that can be duplicated without desired work are prone to being diluted and can become worthless because of increased volume.

One last reason why gold is a safe investment, is gold’s ease to liquidate. Gold is one of the easiest assets to sell. Most places that sell gold will usually buy gold. With the advent of the internet there are many sites you can sell gold to. Also with auction sites and classified sites, finding investors to sell your gold to has never been easier. Gold because of its intrinsic value, its ability to protect wealth from inflation, the limit on how much that can be mined and its ease to liquidate, makes gold one of the safest assets an investor can have.

Gold Coins Or Gold Bars, Which To Invest In

Gold coins and gold bars both have different advantages over each other when it comes to investing in one or the other. To some investors these advantages are the reason for choosing one over the other. To other investors these advantages may be miniscule and will invest in both. Gold coins and gold bars are the most popular ways most investors invest in physical gold.

One advantage an investor may choose to invest in gold coins over gold bars is gold coins ability to build numismatic value over time. Since gold coins are struck with a date on them, the older a coin is usually the more numismatic value it will build. Another reason an investor may choose to invest in gold coins over gold bars is the governmental status of a coin. If a coin is minted by a government it will usually be widely accepted by investors in that nation.

One advantage an investor may choose to do the opposite and invest in gold bars over gold coins is the lower manufacturing cost to produce gold bars. Since gold bars are less expensive to manufacture investors usually get more gold for their money compared to gold coins. Another reason an investor may choose to invest in gold bars over gold coins is the ability of buying older bars with out paying for numismatic value. Gold coins and gold bars are both great ways to invest in gold; it is ultimately up to the investor if they choose to prefer one over the other.

Buy Gold Ingots, Is Gold Ingots A Good Investment

Gold ingots are gold bars that are made by pouring molten gold into a mold. Gold ingots come in many different sizes from one gram to four hundred troy ounces. The smaller gold ingots are known as chip gold. Chip gold usually comes in a credit card like seal. This seal is one of the ways the manufacture of the ingot can authenticate it. It is recommended that you never remove the gold ingot from its credit card like seal.

Chip gold sizes usually range from one gram to twenty grams. Since chip gold comes in smaller sizes compared to other forms of gold bullion, it is more affordable for someone to purchase that doesn’t have a lot of capital to invest. The drawback with chip gold is that compared to larger bullion you are paying a higher mark up for manufacturing. Chip gold is only recommended if you can not afford the larger bullion but want some gold in case of an emergency.

Just like any other form of gold it is recommended that if you do decide to buy gold ingots that you research any company you buy from before you purchase. Gold is a good investment if you are looking to protect your wealth from inflation or any other economic downturn. Gold is also one of the easiest assets to liquidate when the time comes. With the advent of chip gold even if you don’t have a lot of money to invest there is still a way to purchase physical gold.

A Solution To The Economic Crisis

The main reason for the economic crisis is central economic planning, central banking and fiat currency. Once these three things are in place, anything a nation does to try to fix the problem will ultimately fail. To the contrary of conventional thinking this is not a problem with the free market, no nation in the world has anything close to resembling a free market. Once a nation has a central bank, the ability to raise and lower taxes at will, a monopolistic control of the money supply, legal tender laws and fiat currency its economy is anything but free.

The solution is to abandon central economic planning, central banking and fiat currency. Ways of implementing this solution is not just to teardown the old system but to allow individuals to opt out of it. A way to opt out of the central banking system and the fiat currency system is to allow individuals to create independent and autonomous “bank” like entities; also to allow individuals the ability to issue their own currency once it’s back by their goods and services and valued in silver or gold. (Individuals would have the right to refuse to be paid in any currency they have not issued themselves).

To stop government from interfering with these two activities they should be both tax exempt and unregulated. The only exception is in the case of fraud which then it should be handle by the court system. These two activities being tax exempt and unregulated should always be caveat emptor "Let the buyer beware" or in this case let the user beware. It would be up to individuals to assess a business goods, services and practices before accepting its currency; also it would be up to individuals to assess a “bank” like entity services and practices before using them. As mention before in cases of fraud there is the court system but to save time and trouble caveat emptor.

The results of implementing this solution would be businesses having the ability to produce goods and services and create equity. Businesses would know longer depend on banks; banks would now depend on businesses. Another result of implementing this solution would be that “bank” like entities would compete with each other to be more open and transparent to show potential customers that their currency would be safe in their hands. This solution would revitalize local economies when local businesses circulate and accept each others currencies; also “bank” like entities would likely create debit cards to make online and off line shopping more convenient. The economic crisis would slowly dissipate and become a thing of the past with this permanent, innovative and most importantly free market solution.

For more in-depth details on this subject I would refer to two older posts Why The Gold Standard Is Not Enough and Why Everyone Should Be Able To Issue Currency , they are long reads but do go into great detail.

Gold And The Death Of Centralization

Gold coins and gold bars for the pass eight years have been going up consecutively compared to the US dollar. Meanwhile The Federal Reserve is trying all the tricks they can to try to save its insolvent central banking system. What is being witness is the slow death of anything over grown and centralized. The reason for this is fiat money, fractional reserve banking, and central banking is not sustainable and never will be. Naturally any institution that benefited the most from this system or depend on it will also be affected by its slow demise.

Physical Gold and any other assets that can hold wealth even when the economic situation is deteriorating is some of the best ways to protect yourself. Centralization is one of the results of central banking. With central banking comes the growth of government and the overly dependence on government. The reason for this is when governments can borrow at will the people within government are usually tempted to use the power to borrow to “solve” problems that governments have no business solving.

Also with a fiat system any money that is borrowed or created is a tax on everyone through inflation. The institutions that have been prosperous artificially because of easy credit or government subsidies will have to find a way to produce real profits or become insolvent. With the climate of looking to government for help and not looking how to become independent of it, I think a lot of overgrown and overly centralized companies will not adapt but like most central banks reach their slow demise.

Why Everyone Should Be Able To Issue Currency

As an advocate of allowing anyone to issue their own currency once that currency is backed by goods and services and valued in silver or gold, I see some people are reluctant to agree with this concept. The reason for this is the notion of others creating currency and not backing it by anything. In a free market where anyone can issue their own currency once it fits the criteria mention above and people are allowed to reject any currency they have not issued themselves; such a system would be for the most part self-regulating. Naturally like every other aspect of commerce if there is fraud involving private currency it should be resolved in a court of law. The reason a system like this would be self-regulating is the fact that it would be beneficial for any business or person to have the ability to use their inventory or man power as a liquid asset to acquire even more goods and services. The last thing a business or person would want is to have people reject their currency and have people accept their competition’s own. The disadvantage would mean the competition having the ability to expand and grow faster.

Some other reasons why people would be reluctant in allowing anyone to issue their own currency is the amount of different currencies that would be floating around. These currencies would be valued in silver or gold, so it would be fairly easy to compare them to each other. Also companies or private institutions would spring up that would rate or ask businesses to voluntary abide by certain guidelines in order to receive a stamp of approval or a certification for their currency. An example of a system like this is the privately owned Underwriters Laboratories Inc. and their testing and certification of products most of us used today. Other companies or private institutions that would spring up would document which businesses accept each others currencies.

Some last reasons why people would be reluctant in allowing anyone to issue their own currency is the thought that it would lead to inflation; the belief that government currency would be superior; the belief that gold or silver backed currency would be superior; the thought that a business would go out of business leaving people holding the bag; or the risk of counterfeiting. I will try my best to address all of these. The occurrence of inflation would be unlikely because these private currencies would be backed by something, also businesses would be limited to the amount and value of their goods and services they have or can produce pertaining to their worth in silver or gold . If a business or person did decide to issue more currency than the goods or services they have or can produce in a timely manner, two things would likely happen. One they would have to raise the prices of their goods or services to soak up the extra currency, or two have long lines or empty shelves. Both scenarios would hurt the business in the long run and allowed their competition an advantage.

The aspect of believing that government, gold or silver backed currency would be superior can be answered with one answer. If anyone believes a certain type of currency to be superior they can refuse to be paid in anything other than the currency they trust. Governments would just lose the ability of forcing people to use government currency if they wish not to. The availability of gold and silver backed currencies should be widespread because of mining companies. If mining companies issued their own currencies there is a good chance that it would be backed by what they mined, so gold and silver backed currencies would also be in circulation. The risk of businesses going out of business and leaving people holding the bag can be alleviated by the court system or insurance. Also because of the fact that the currencies are backed by something, if the business is honest it will satisfy its currency before it closes up shop for good. Compare this to the scenario of an entire nation’s currency collapsing where alleviating the situation is much more difficult to say the least.

Last but not lease the risk of counterfeiting. The risk of counterfeiting would be reduce because businesses would be able to use their own authentication techniques and also be able to know the serial numbers of all the currency that they issued that is in circulation. Allowing anyone to issue their own currency once that currency is backed by goods and services and valued in silver or gold is in reality less risky than it sounds, in fact it is less risky than the fiat system most nations have in place today.

Underneath is the amendment that would list how a nation can go about allowing anyone to issue their own currency once that currency is backed by goods and services and valued in silver or gold. (Note I don’t believe rights are given by government but are given by God).

Amendment 28

Every corporation and person with a good or service shall have the right to issue their own currency back by their goods and services. This currency must be valued in silver or gold and must be treated as legal tender by the corporation or person who has issued the currency. Any corporation or person shall have the right to refuse the payment of any currency they have not issued their selves. No government, corporation or person shall have the right to stop a corporation or person from issuing currency once that currency is back by their goods and services and valued in silver or gold. If a corporation or person issues currency and do not have the goods or services to back it, the corporation or person's assets must be seize and given to the holder or holders of the currency until the currency value is fulfilled. If a corporation or person issues currency and do not have the goods or services to back its currency because of natural disaster or fire, that corporation or person shall have thirty years to fulfill the currency. If a person dies or a corporation is disbanded assets from that person or corporation must be given to the holder or holders of the currency until the value of the currency is fulfilled. No government shall tax currency issued by a person or corporation in anyway.

Gold, Limited Government And A Sustainable Economy

Gold and other precious metals usually becomes the default choice when societies have the freedom to choose their money. The reason for this is people tend to do things for their own best self-interests. You will never find in history a society willfully using fiat currency without governmental force. Today most governments use fiat currency and through legal tender laws and central banking force their citizens to adopt this to their own disadvantage. With gold and other precious metals governments are limited on how fast and how big they can grow. With fiat currency governments can inflate the money supply and grow too large.

Also when governments inflate the money supply it usually has ramifications on the economy. One ramification is the prices of goods and services increasing. With this price increase so does the cost of living; which in turn brings down the standard of living. Another ramification is businesses that made more profits before the price increase tend to expand or take on more expenses than they normally would have, then when prices increase those businesses take a big loss.

Gold and other forms of honest money is one of the best tools to help keep governments limited and to keep an economy growing stable and sustainable. Gold and honest money by itself is not enough to keep an economy stable and sustainable but is one of the best tools that can help. Other tools that can help are low and stable taxes where taxes do not fluctuate too often, no central banking and no legal tender laws. Gold and other precious metals when freely used as money not only can help keep governments limited but help society grow sustainable as a whole.

Gold And The Future Of Money

When I see governments all around the world trying everything in their power to prop up failing systems or ideas like central banking, fiat currency, legal tender laws, and even the attempts of trying to control the economy, it is disturbing to say the least. If you have read my older post Why The Gold Standard Is Not Enough, You will know that I am not an advocate of a government gold backed currency but an advocate of privately issued currencies by everyone, once it is backed by goods or services and valued in silver or gold. That being said I do acknowledge the supremacy of Gold and Silver as money in the past and likely the future.

With governments around the world seeing themselves as the solution to the economic crisis and not the cause of it, they will continue to use more governmental intervention in the economy to the detriment of their true masters their citizens. What is breaking down is the myth that central control of something is superior to a decentralized smaller more responsive approach. If we take a look at most of the institutions that are failing they are the institutions that benefited the most from easy available credit because of the unsustainable dishonest central banking system.

I believe the future of money will be tied to gold and silver and be decentralized. With the growth of the internet and the transfer of information becoming easier and more innovative; it will be a matter of time before most people will be able to anonymously trade digital representations of resources that no person or government will be able to track or tax. Since gold and silver has a reputation of holding purchasing power and a universal acceptance it will be likely to be denominated in one or both.

Governments will likely use excuses of illegal activities or tax evasion to try their best to discourage this activity. Just like how pirating music movies books or software can not be stop by governments; anonymously trading of resources or representations of resources will also be problematic for governments to stop. Something like this can be a double edged sword because of its potential misuses but will also be a way of trading cheaply and privately. All in all if something like this does become widespread it is in my humble opinion it will be more honest and ethical than the central banking system most nations have in placed today.
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