It's nice to see the media actually discussing Gold. But what's a little disturbing is how poorly understood gold's historic role in the financial system is. What's more, doesn't anyone know what sound money is any longer?
Our burden today, then, is to remind these nattering nabobs of negativism that gold is not anyone else's debt. It is not anyone else's liability. It cannot be created with a few keystrokes. And for thousands of years, millions of people from all walks of life have been happy to use it as money because of its unique features (divisibility, durability, scarcity, difficulty in counterfeiting).
Gold is a commodity. But its price is not driven exclusively by the Indian jewelry market or investment demand. As a tangible commodity, gold has some of the aforementioned qualities that make it a fantastic medium of exchange.
: )
ReplyDelete