3 Signs That Gold Could Become The Next Global Currency
Gold and silver have always had importancein the economy. With turbulent times in the financial world and with many countries on the verge of defaulting on debt there is bound to be a change in the form of currency around the world. Gold is bound to be one of the first options for people to turn to for three major reasons.
Gold Has A History of Being Valuable
Since the beginning of recorded history gold has had a value that no other item has been able to match. Early Romans, Greeks, and other cultures all had gold coins to be able to create a monetary system not far from ours. We still produce gold coins after all and they still hold a value above any other coin we make. Gold has an aesthetic appearance that has attracted people to it. The fact that gold was hard to obtain in early history made it all the more valuable.
Many countries have started to guess that the time to use gold as a currency is once again drawing closer. Almost all major countries, and even some of the smaller ones, are starting to repatriate the gold that they have stored abroad. Bringing it back from various locations across the world but mainly taking their gold out of banks in the United States and the United Kingdom. Unfortunately, this also makes both major world powers look weaker because they are being framed in the light that they can’t protect the gold they have been holding for years.
The Economy is Turbulent
As mentioned above the financial world is turbulent with stocks fluctuating so much that some financial advisors are saying that the economy is doomed to crash soon. Over the history of the United States every time the economy has gone down the value of gold has gone up. In fact, almost every peek the gold market has seen was when the value of the dollar was down.
If the market and value of the dollar does drop below a usable level people are going to want to have something that has a physical value, not a piece of paper. Gold and other precious metals have a physical value because they are rare and treasured.
Gold Can’t Be Printed
One of the problems with the dollar and other modern currencies is that countries have just been able to print them when they were needed. The United States printed millions of dollars during the last economic depression as a stimulus to get the country out of the rut it appeared to be in. According to experts that money has yet to hit the public but when it does they predict that it will crush the market. With being able to print currency at will the value of the paper being printed can change in a second.
Gold is an ore that is found around the world, it isn’t produced by printers. Should paper currency become unreliable people are going to want a currency that can’t just be changed willy-nilly and the solution to that is precious metals. Once paper currency goes away the value of any precious metal should become more fixed, there will be less reason for it to fluctuate due to the fact it will move from being a currency in the background to being a more well used form of payment.
The signs that the world currency is going to change soon are out there. All you have to do is look and they will become obvious to you. There are many reasons that gold would be a first choice. It can’t be printed, it’s a natural resource, and it’s attractive. The fact that it has a long standing history of being used as a currency helps its cause. Many people have suggested markets like bitcoin will take over as a global currency but you run into the same concerns you do with the dollar, it’s not a material that you can have on hand and the people who run bitcoin can just introduce as much currency as they want.