Across the internet we often are confronted with the following sentence: "Gold is money".
This is brought up as a reason for people to buy gold. There are numerous of people seriously thinking our next monetary system will use gold (and silver) as some kind of money.
Because these commodities today aren't used as money there should be a big, big price advantage for the clever guy to step in and buy these commodities.
As I also believe there are once in a lifetime opportunities here, it's not because of this money reason. This post should try to clarify the current situation. How do people come to this thought of gold is money?
Will it eventually make things functioning better than they are today, and is it even possible to happen?
For me to come to an answer at these questions I think it's important to define what is meant by the term "money". Ludwig von Mises describes it this way: Money is a medium of exchange. This is a view from the Austrian School. My take on this is a little different, but instead of making this subject even more difficult let's stick to this definition. The next time I use the word money I hope we can agree on the fact that we mean the medium of exchange.
This is brought up as a reason for people to buy gold. There are numerous of people seriously thinking our next monetary system will use gold (and silver) as some kind of money.
Because these commodities today aren't used as money there should be a big, big price advantage for the clever guy to step in and buy these commodities.
As I also believe there are once in a lifetime opportunities here, it's not because of this money reason. This post should try to clarify the current situation. How do people come to this thought of gold is money?
Will it eventually make things functioning better than they are today, and is it even possible to happen?
For me to come to an answer at these questions I think it's important to define what is meant by the term "money". Ludwig von Mises describes it this way: Money is a medium of exchange. This is a view from the Austrian School. My take on this is a little different, but instead of making this subject even more difficult let's stick to this definition. The next time I use the word money I hope we can agree on the fact that we mean the medium of exchange.