Greg Canavan is the editor of Sound Money. Sound Investments, a weekly report on the best value investment ideas in the Australia share market, with a commentary on the global economy and economics. For a free four-week trial to Sound Money. Sound Investments, 'The major monetary metal in history is silver, not gold.' - Nobel Laureate Milton Friedman
Although now in correction mode, gold hit another all-time high this week. As we have said on a number of occasions, gold is rising due to the instability of the global financial system. Gold is money and as the ultimate global currency and store of value, the yellow metal is regaining its place in history as a trusted reserve currency.
But throughout history, gold has not been the only monetary metal. Silver has always played a role alongside gold. In fact, up until the beginning of the 20th Century, more people used silver as money than they did gold. You wouldn't know it though, would you?
Beginning in the last quarter of the 19th century, the major economic powers, the US and Great Britain, systematically de-monetised silver. That is, they worked to remove silver from the global monetary system. This conclusion is debatable but as you will see the decision to stop using silver as money was not one taken voluntarily by the people. (more)
No comments:
Post a Comment