[quote=peterb]Data and history overwhelmingly make gold real money and a store of value. I dont even care much for the stuff, but I wont go against a track record of such strength. The only time a currency has had a solid long track record is when it’s tied to gold. Fiats end-up being abused by the govts that issue them. And that’s that. It’s what humans do to eachother. Gold puts hand-cuffs on this behavior and it’s why govt seeking more power tend to go off gold standards.[/quote]
Peter: History overwhelmingly makes gold REAL MONEY and a STORE OF VALUE. That’s a very sweeping statement and yet you offer no facts in support.
The only thing history overwhelmingly shows is the folly of mankind, occasionally punctuated by humorous moments, like the rise of Napoleonic France.
History does no such thing. There have been times that silk and spices (commodities) were a better store of value than gold and there have been points in history when the Venetian equivalent of municipal bonds performed better than gold (gold as real money). I’m a history buff and can tell you, without fear of contradiction, that gold has risen and fallen throughout history as both a means of value and store of value. You look at Mesoamerican culture at the time of the Conquistadors and juxtapose how the Aztecs and Incans valued gold versus the Spaniards. It all depends on the culture, the times and the context.
Read Niall Ferguson’s “The Ascent of Money” for a more informed picture.
