Silver and Gold represent the pinnacle of traditional long term savings and security - the Ultimate Money. Why? Because it is the only monetary asset that isn't someone else's liability. It has a basic value as a commodity for many uses, it never spoils or deteriorates. It doesn't represent a promise to pay and it isn't dependent up the survival of a particular power or group of powers. In 1810, 30 silver ounces or 1 gold ounce*, would purchase you a Very Good Weapon or a Fine Suite Clothes. It would do the same in 1910 just as it would today in 2010. In two words, it is valuable because IT IS.
* (The traditional ratio of gold to silver)
No comments:
Post a Comment