Why is gold considered a hedge against fiat currency? If the monetary system collapsed — as in, the USD or the GBP or the JPY were no longer accepted in exchange for goods — are you absolutely sure people would accept Gold as a substitute?

This is not gold coins minted by a current government — it’s gold bars, gold bullion, or gold coins from some historical government (like, Spanish doubloons).

Gold, just exactly like fiat currency, is worth something just because other people think it will be worth something.
So if that’s the case — then why is gold considered a hedge against inflation?

Why is gold considered a hedge against fiat currency? If the monetary system collapsed — as in, the USD or the GBP or the JPY were no longer accepted in exchange for goods — are you absolutely sure people would accept Gold as a substitute?

image

This is not gold coins minted by a current government — it’s gold bars, gold bullion, or gold coins from some historical government (like, Spanish doubloons).

Photo detail

Gold, just exactly like fiat currency, is worth something just because other people think it will be worth something.

So if that’s the case — then why is gold considered a hedge against inflation?

image


hi-res

9 notes

  1. supernovasyntax reblogged this from isomorphismes and added:
    Or, what if we collectively stopped assigning value to arbitrary things like gold or currency altogether? Societal...
  2. spinningpetrichor said: Methinks something is up with the embedded last image. All I have is pages of net-speak.
  3. isomorphismes posted this