Why the future money is gold and silver

Seeking Alpha/Alasdair Macleod

Repost from 4-20-2021

photo image of stacks of gold and silver coins

“It is almost certain that like the majority of gold and silver bulls hodlers expect to sell bitcoin for profit measured in their governments’ currencies, creating for themselves relative wealth in dollars, euros, yen — whatever their governments impose on their citizens as money. But it is an investor’s, or speculator’s approach, which is accompanied by feverish examination of charts, confirmation bias from ‘experts’ and only a half-understood concept of what is driving the price. So sudden and wonderful has been the unbanked wealth creation in leading cryptocurrencies, that investors commonly proclaim that gold and silver are yesterday’s story and that we oldies should move with the times.

These investors claim that five thousand years of empirical evidence is about to be overturned. But they are investors. All bulls and no bears. Other than banking fabulous profits in fiat at a future date, this has nothing to do with money per se. The point about sound money is you acquire it by spending fiat, so that when fiat goes you will have it to spend. It is not an investment decision, but more like an insurance policy taken out for which a risk assessment has to be made.”

USAGOLD note: A realistic, thoughtful discourse on the differences between precious metals and bitcoin, the piece linked above may be seen someday as the final word on the subject. Macleod covers all the bases…… Though we doubt that gold and silver will ever be used again as transactional money in this digital age, we do believe, as does Macleod, that it will serve investors well as an insurance policy against the debasement of national currencies.

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