Forget the manipulated price of gold for now as the world from all avenues is rushing headlong to a return of a gold backed monetary system
BY KEN SCHORTGEN
TheDailyEconomist.com
APRIL 2, 2018
For individuals who are begging for a return to sound money in this world of unfathomable debt and devaluation of their currencies, cheer up, because a paradigm shift is taking place right under our noses.
For over 45 years the world has functioned in a monetary system of fiat currencies that are backed by debt, rather than by gold, silver, and ironically even oil. And this has culminated in a consequence where global debt is now three times greater than global GDP, and where many nations have devalued their currencies to the point where they are worth less than three cents of their original value and purchasing power.
But everything in time swings back and forth like a pendulum. And despite the fact that the world’s most powerful financial markets (Wall Street and London) have and are manipulating the price of gold to protect their insolvent currencies, the world from all avenues is rushing headlong towards a return to gold backed money.
Gold backed Acconts:
Since 2008, the ability to conduct commerce and payments outside of a traditional bank has exploded with multiple options emerging which include that of gold backed deposits.
Goldmoney is one of the most recognizable of these business models which allows you to store your money outside of a bank, and use your cash as payment for goods and services through a Visa/Mastercard Debit card. And what is most important about their business model is that your money is actually tied to physical gold, which at any time you can call for in delivery instead of then simply returning your currency.
Of course there are other businesses in this sector that function at different levels of efficiency when compared to Goldmoney, but that is changing quickly as more individuals begin to wake up to the fact that like in 2008, the banking system is insolvent and the threat of losing their wealth to a bail-in is a real possibility.
Gold Backed Cryptocurrencies:
2018 has been the year of the gold backed cryptocurrency, with at least 35 different ones now being formed that even include sovereign mints such as the Royal Mint in London and the Perth Mint in Australia.
Nearly all of these gold backed cryptocurrency models already have, or are working on the ability for individuals to use their tokens as money, and most will allow at some point the ability to demand delivery of the gold that backstops their crypto tokens.
Sovereign governments repatriating gold:
In the past few years, and especially following the 2008 Financial Crisis, there has been a concerted effort by an ever growing number of governments to repatriate their gold over the fears that the current monetary and financial system is doomed to fail. Germany, Holland, Austria, and most recently Hungary have all demanded repatriation of their gold from offshore storage, and this will only accelerate should China succeed in bringing forth a gold backed trade note.
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