My Book: Need opinion on whether gold is money?

Discussion in 'General Precious Metals Discussion' started by Cinvalo, Sep 2, 2012.

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  1. bordsilver

    bordsilver Well-Known Member Silver Stacker

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    Does that make oil money as well :|
     
    bordsilver, Sep 3, 2012
    #21
  2. wrcmad

    wrcmad Well-Known Member Silver Stacker

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    Or, does it make gold just another currency? :/
     
    wrcmad, Sep 3, 2012
    #22
  3. Aureus

    Aureus Active Member Silver Stacker

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    Gold isn't money until the government tells us it is really.
     
    Aureus, Sep 3, 2012
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  4. rbaggio

    rbaggio Active Member Silver Stacker

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    No, I would have mentioned commodities trading desk if I were talking about oil.
     
    rbaggio, Sep 3, 2012
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  5. CriticalSilver

    CriticalSilver New Member Silver Stacker

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    Gold (XAU) and Silver (XAG) are traded as currencies in foreign exchange trading, they just don't have a government or particular central bank mandating their use in national financial transactions.

    Oil is sold in USD which generates a large and sustained demand for that currency, but it could be traded in Euro or Gold just as easily ... If not for the obvious examples of what the USA will do to those that try!

    Gold is a form of savings for people from India (and Thailand), it's just that national governments mandate internal trade is conducted with their respective currencies as they get a lot of benefits from being the middle man, just like the USA and the oil trade.

    But just because the goons-with-guns demand their currencies are used for legal transactions doesn't mean Gold (or Silver) are not money. It just means they are not authorised national currencies at the moment.

    In fact, I wouldn't be surprised if many illicit or tax avoiding transactions weren't conducted in the uncontrolled, practically untrackable money of Gold (or Silver).
     
    CriticalSilver, Sep 3, 2012
    #25
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