Gold is money, because of its
fundamental nature.
Gold is money because it is liquid and easily tradable, with
a narrow spread between the prices to buy and sell (about 1%). Also, gold is
easily transportable, because it has a high value for its weight. This makes
gold an excellent medium of exchange.
Gold is money because it is divisible, you can divide it into coins, or re-melt
it into bars, without destroying it. Also, gold is fungible, where each unit of
.999 fine gold (99.9% pure) is similar enough to another unit so as to be easily
interchangeable. Gold is also nearly impossible to counterfeit, as genuine gold
is easily recognizable. When measured by weight, gold is easily countable, and
verifiable. These properties make gold an excellent unit of account.
Gold is money because it is a great store of value. Gold is not subject to
decay, rot, or rust. Gold has an intrinsic value, because it is rare, highly
coveted the world over, and is a luxury item.
There is not a single other commodity with those attributes, except, perhaps,
for silver. But silver is substantially heavier, and not really suitable for
transactions in excess of $1 million. Platinum and palladium may come close, but
they are not so easily recognized by the masses.
How high will Gold prices go? You do the
math on what a day's wage should be, and you tell me!
Will people be hurt if silver and gold prices rise? Not you
if you own some! But also, honest weights and measures used in commerce are
supposed to produce prosperity for all of society, not poverty.
But you must act to benefit from this information.
Don't wait for silver to rise before buying it. Silver prices could rise by over
$20/day to exceed $100/ounce at any time if large funds or billionaires buy with
desperation.
Surprisingly, most large, well-known, major silver stocks are overvalued!
But certain stocks in small companies who explore for silver may rise much
faster than silver itself! Some silver stocks could rise as much as five or ten
times more than silver alone! But prices for silver stocks are volatile,
changing often--and that creates even more profit opportunities. To learn which
silver stocks are the best at any given time, you ought to subscribe to my free
email newsletter -- because you or I can never know, in advance, precisely when
the market will give us a great opportunity. So, web site updates are just not
timely enough. You need to get my free email newsletter.