“Money,” can be described as a device used to purchase something, or perhaps a compact way to store something valuable or something which represents a valuable item. Stock, is a microscopic ownership in a corporation, and I say ‘microscopic,’ because as an example, there are over a billion shares of GM in circulation or ownership in the world today.
Not to dwell on a total absurdity, but one non-metallic, backed by nothing, bit-coin, which no one can own other than a certificate, now as I write this, is ‘worth’ $103,000.
As far as U.S. money is concerned, today there are $1.7 billion $1.00 bills, 8.9 billion $20 bills, and 11.5 billion $100 bills, plus other U.S. money, with a total value of $3.3 quadrillion dollars. All, of course, are backed by the “Full Faith and Credit of the United States Government.” That’s better by far than a bit-coin, but maybe not quite as good as a share of GM? You decide! I could care less.
There are 300 billion Euros in circulation. We must not forget Zimbabwe, which used to be Rhodesia, a marvelous, free place, which exported food, had a stable currency, and was ruled by white farmers, but was captured and destroyed many decades ago. Zimbabwe, since its capture from Rhodesia, has been through all sorts of dictators and paper money, but currently, there are 576 quintillion Zimbabwe dollars in circulation, and prices are doubling every 1.3 days.
Throughout history, from Egyptian times onward through Roman, Greek and other dynasties and powerful rulers and governments, probably thousands or even more various ‘monies’ or currencies have existed. Before paper was invented, the bark of a tree, food, or other tangible items, were bartered for their desirability or necessity to continue a person’s existence. In World War Two, American cigarettes and Hershey bars were bartered for wanted items, including physical human items such as prostitution.
The Greek Drachma has been used since 1100 BC it is said, and the Roman Denarius, dates back to 300 BC. I have a silver Roman Denarius mounted on a frame on my office wall.
During our Civil War, the North printed the ‘Greenback,’ and the South printed the “Confederate dollar,” both of which became worthless, as did the denarius and drachma. All ‘monies,’ in all of world history, have reached ZERO in value. Some faster than others, but none currently as fast as in Zimbabwe.
A hundred years ago, after World War One, Germany was forced to pay for the damages it had done, with an absurd “Treaty of Versailles,” which Germany refused to sign, and was directly responsible for the rise of Hitler. The German Reichsmark, had been worth a U.S. silver quarter before the war, but endless printing of it to satisfy the Treaty of Versailles, destroyed the German economy and the Reichsmark became so valueless, that it was used to start fires or insulating homes. A loaf of bread, took a wheel barrow of Reichsmarks to purchase.
A U.S. pre-1964 silver quarter now, is worth about $6.50. 61 years ago, it was worth a quarter.
Please remember Stott’s Law. “Whatever there is more of, the less they will be worth,” or “Whatever there is less of, the more they will be worth.” This includes un-backed anything, water in the desert, antiques of all sorts, desirability, availability, and usefulness, to name a few.
Is there a common denominator?
Yes there is, and the same thing has been available, useable, obtainable, valuable, beautiful, and such, in all nations in history, through thousands of currencies, which all ended up with zero worth. It has been gold, and to a lesser but perhaps more easily used, silver. Gold is 95 times more compact than silver, which is the ratio between gold and silver: 95 to one. A client of mine came by yesterday with a gold Maple Leaf, and wanted to trade it for silver. He got 95 ounces of silver for his one gold Maple Leaf. Since had bought the Maple Leaf from me, along with many more, he just wanted some silver, and he got 95 ounces. I charged him nothing, since he had bought the gold from me.
No matter which time period in history, or which nation in which you resided, if you had gold and silver, you were in excellent economic shape. Under a dictatorship, Muslim, communism, anarchy, war, or you name it, if you had gold or silver, you would survive, whereas your neighbors might starve to death. Literally. No one would know you had it, as gold and silver purchases, are never on any government list, and if you died, your kids would have inherited them with no inheritance taxes, as long as they knew where you stored either or both.
I have no idea of how economically smart Americans are. Probably not too awfully so, or bit-coin would not be $103,000, and backed by nothing. Gold and silver need no backing, and are valuable by themselves. No government in the world, have gold or silver backed coins or currencies. Printing presses do not produce value. They produce inflation, which is a huge tax on the citizenry, as are Trump’s tariffs. The U.S. dollar has already lost to perhaps 5% of its value or purchasing power of a hundred years ago. When a Coke was a nickel, a Hersey bar was a nickel, and my Dad bought a new Plymouth in 1940, for $650. The Coke, Hershey bar, and Plymouth still weigh the same and accomplish the same, but the money, which is still called by the same names, has lost 95% of its value or purchasing power. Gold and silver will still buy the same things as they did a hundred years ago!
We have no office manager, no retail store, do not deal in numismatics, and do no advertising. We’re not in the yellow pages, don’t keep our customers’ names on a computer, and have no sign in front of our homes, even though we are well armed. Our 1% charge, delivers gold and silver to your door.
-Don Stott don@coloradogold.com