Happy Girl
Registered User
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Withdrawing from the Perth Mint could be quite difficult when global economic meldown occurs and law and order breaks down in Ireland. I don't fancy a transcontinental trek to Mad Max land using my backpack survival kit and barter skillsIf you are investing rather than wanting to own finsncial insurance then best to buy Perth Mint as is government AAA rated and you do not have to take delivery.
To question gold for having a use in a practical sense is irrelevant. The same could be said with paper money. What practical use can we get for it? None, bar burning it for heat. It is the perception from users of money which gives it a use; to be an efficient medium of exchange. The same can be said for gold.
Hi Colm5,
I would beg to differ.
The US has been off a formal gold standard since the Bretton Woods conference in the 1930s. The early 1970s say the complete abolition of the gold standard. The US Dollar has been the reserve currency worldwide since the 1930s, so it couldn't protect Japan, GB or Ireland in the early 1990s as all global currencies were using fiat money.
Part of the reason why US can't sell their bonds anymore is because they have printed the heck out of their currency. China, Japan, and the Middle East want no more of these increasingly worthless IOU's that are backed by just perpetually printing dollars.
You are right about gold reserves not being the clear cut factor for economic power. Productivity is.
You are also right about money having a use - to buy goods and services. But we need to question if this use is as efficient as it could be? We need an efficient medium of exchange. Fiat money may become completely inefficient if we keep printing it and experience inflation. It should be noted that our fiat money system that we have today has only been in existence since the 1970s so we should not put complete blind faith in it. Gold has proven to be an efficient medium of exchange over thousands of years. Combining money with a gold backed system can stamp out the inefficiencies of fiat money. Bartering is not efficient.
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