the game has changed - kirby, page-11

People buy gold for a lot of reasons.

Can be for status, Jewelery,

Can be for Security, because it will fetch value anywhere anytime, it cannot collapse like paper currency.

In Zimbabwe, when the currency became toilet paper, people were buying everyday stuff with gold.

The more insecure the world, the more your gold is worth.

Hence until recent times, currency was gold backed.

When paper currecy was 1st introduced, it needed to be backed by something all countries valued, hence gold.

paper currency made sure that gold was never lost by these nations, it was kept secure by the govt.


then....

Fiat money was introduced, so govts could manipulate and live beyond their means.

if you go on buying stuff on credit cards, do not repay, you go bankrupt.

USA has done just the same, but due to its, print more $$, and the problem will go away policy, the bankruptcy has been avoided, so far.

But the world is slowly but surely had enough, and is reacting. Like Russia and China buying gold reserves.

Gold may be treated as a commodity now, but in reality is the only currency that has been constant for the last 5000 years.

And it will live beyond the USD or any other paper currency.