You will find many articles about gold and other valuable metals here on State Of Globe. You will also find that the word gold standard is coming up, again and again. But what makes gold more valuable than almost anything else? How can we build a system of trade and money basically on gold alone?
Many people have asked me why I repeat this gold info over and over. They ask me about the difference between paper money and gold? They do not ask about the obvious, that paper is so much easier to carry. My simple answer is: Have you tried to fire up a match under a gold coin, and then under a paper note? Have you seen which one of them disappears first?
Gold does not need food
Money is about making the exchanging of goods and services in an easier way, and it definitely is about taxing the public in a much more effective way than they could when they took grain, sheep, and whatever else the poor farmers had.
The king has historically always wanted his share of everything his serfs create, and do. And the king got very happy when he could fill his gold chests instead of his barns. The gold chest did not even demand food, like the animals always did.
To be able comprehend, to really understand what is coming against us in the financial world, one has to fully see the difference between real value and perceived value when we talk about buying and selling. Gold is real value, paper is only perceived value.
Very simply put, real value is something that last forever. Real value also is something that never changes, in any way, shape or form. No change, unless you on purpose want it to. If you change it, but you still can get it back to normal without it loosing anything in weight or functionality, you have the perfect example of what real value is. What I in fact am describing here is gold.
Will never change
You can melt gold; you can do whatever you want with it. It will never corrode; it will never vanish (for real. It may of course be stolen) into thin air, and it will stay 100% the same in all of eternity if we do not physically change it. But even then you will not lose even a microgram. Nothing will evaporate or disappear in any other way. Which makes gold totally impossible to manipulate, because it is not possible to change the real value of gold. Its weight stay like it is, no matter what we do. Is it possible to say the same about our money today?