Gold’s Return as Money

The comments below are an edited and abridged synopsis of an article by Alasdair Macleod

“Since the suspension of Bretton Woods, the [US] dollar has lost 98% of its value relative to real money, which is gold. The other major fiat currencies have been similarly impoverishing, and only now is the final act in their destruction looming.”

Gold’s Return as Money - BullionBuzz - Nick's Top Six
Graph of gold coins with Australian Currency

“An acceleration in the rate of collapse of fiat currencies will obviously lead to a significant increase in demand for gold. Therefore, commodities and goods values measured in gold will fall. This would also be reflected in the purchasing power of currencies on a credible gold standard, increasing their divergence from fiat currencies even further.”

“What we have described is the development of a world split by an acknowledgement that gold is money and that currencies must become credible substitutes for it, and a world hooked both practically and intellectually on fiat currencies. Instead of assuming the world economy is interdependent on the economic policies of all nations, we will discover that that is not the case, and while the fiat world sinks into a currency collapse, nations which embrace sound money are set for a new phase of economic prosperity.”

Macleod discusses Russia and its possible return to the gold standard; an emerging gold standard in Asia; oil and gold; the monetary consequences of Asian gold standards; difficulties for major players that are likely to emerge; and the moment of fundamental choice that is rapidly approaching.

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