‘This time is not different’
“Even if the investor remains upbeat about the financial architecture’s future stability, gold commends itself as an excellent alternative for time – and savings deposits. Because in an environment of negative real short-term interest rates, the purchasing power of time – and savings deposits will melt like ice in the sunshine, while gold stands a good chance to not only retain its purchasing power but to even increase it – as it has done since the early 1970s, when the world was put on an unbacked paper money standard.”
USAGOLD note: We spend a great of time at USAGOLD emphasizing this very same point. Gold’s principal contribution to the realm of finance is twofold – first, as a vehicle for long-term asset preservation under a variety of negative economic circumstances (deflation through hyperinflation) and, second, as a stable alternative to currency-based savings.
Repost from 2-19-2019