The appeal of a gold standard is that it arrests control of the issuance of money out of the hands of imperfect human beings. With the physical quantity of gold acting as a limit to that issuance, a society can follow a simple rule to avoid the evils of inflation. The goal of monetary policy is not just to prevent inflation, but also deflation, and to help promote a stable monetary environment in which full employment can be achieved. A brief history of the U.S. gold standard is enough to show that when such a simple rule is adopted, inflation can be avoided, but strict adherence to that rule again.
The gold standard is a monetary system where a country's currency or paper money has a value directly linked to gold. With this system, people can convert their money into gold coins and bullion as needed.
This system was first adopted by several European countries in 1873 and remained in place until 1914 when World War I broke out. The United States followed suit with the passage of the Gold Standard Act of 1900 which made them one of the last Western nations to adopt it. Presidents like Calvin Coolidge and Herbert Hoover were proponents of it and attempted to stabilize prices during an unequal distribution of wealth throughout America by enacting tariffs and enacting other policies that would help workers. However, after the Great Depression, countries like Britain left the gold standard which caused most other countries to follow suit as well.
The U.S. dollar is simply the benchmark pricing mechanism for gold. Therefore, the price of gold and the value of the currency of the United States are inter-connected. So when the U.S. dollar was getting clobbered against global currencies due to the virus spread in the U.S. gold prices have been rising.
When the value of the U.S. dollar moves lower, gold tends to become more expensive as it becomes cheaper in other currencies. In other words, the U.S dollar has been only weakening and Analysts it’s likely to stay that way in 2021.
We all strive to live the best life and secure our future.
Therefore, using our money as a strong asset in advance is crucial, especially now after the pandemic has caused a financial crisis. That said, it’s extremely important to choose an asset that will beat inflation.
And to choose wisely, let’s recap to the only asset that made profit during the coronavirus pandemic: Gold.
Gold is perhaps the best asset you can make for yourself and family. For one, precious metals like gold will always be valuable, as it’s always been since the beginning of history. Moreover, purchasing gold is unlike stocks or bonds for the sole fact that you can actually hold your asset.
Buying gold is a good way of diversifying your portfolio. By doing this, you will always have an asset to fall back at times of emergency. As gold offers high liquidity, it helps you meet your financial needs in a short span. Thus, it is advisable to allocate about 10-15% of your portfolio towards gold.
Our dedicated specialists at Minted will address any questions or inquiries you may have and work to find the choice best suited to your needs. All you have to do is Sign up for a free account now and buy from as little as £30 (a minimum) and a maximum of £1000 per month. Once your funds are cleared and your order is approved, your gold balance will be updated on your account.
Your gold is safely stored in a high security UK vault and is fully insured to the market value. Furthermore,
you may have the bullion delivered to your registered address subject to a delivery charge.
Don’t worry you’re in safe hands. Your gold is safe and always owned solely by you. However, don’t take just our word for it; Respected London firm Alliotts conducts quarterly independent audits to make sure the physical gold matches what we hold in our system.