The world is so use to paper money or fiat currency and central banks are well and truly established financial institutions, that no one ever thinks what that the paper in our pockets is. But with the cycle of financial crises, and the ever growing debts off governments, it may now seem timely to consider gold and silver as alternative currency.
Paper money is the consequence in what economists call the coincidence of wants. It is the medium of exchange in the transaction of goods which are wanted for exchange by both parties the buyer and the seller. This in days past was undertaken by barter trade but in todays current environment these transactions use paper money.
Gold and silver has a long history with been know as precious metals, and thus where use at one point in time as a means for payment and a storage of wealth. Their value was initially determined as ornamentation and jewelry by those in high societies of old civilizations such as Mesopotamia, Egypt and other neighboring communities. When used directly in trade, it was weighed and issued in standard weights and measures. This standardisation first came about when the first coins were minted by societies making use of these metals for a common medium of exchange.
Fast forward to the present, a good number of states are considering new currencies which will be backed by silver and gold. The financial crisis of 2008-2009 showed just how fragile the world banking industry is and that the ever growing indebtedness of governments is increasing the rate of inflation thus lowering the buying power of their paper currency.
A currency backed by gold and silver would not devalue and would keep the holders wealth intact.
Using Gold and silver as an alternative currency makes some sense since gold has grown, adding value while the US dollar the worlds trading currency is continuing losing value. Both gold and silver as a hard asset are more likely to be used as the comeback transactional medium for a country who has suffered a major financial downfall.
The down side to gold and silver is the continued manipulation in market over the past few years, which continues to drag gold and silver prices lower giving a feeling of hopelessness to investors of physical gold and silver, but creating an opportunity for those that see gold and silver as an insurance policy to coming economic collapse. The reality is that this is the greatest buying opportunity in our lifetime before the next global economic crash.
Having actual gold or silver coins of fixed value can impose a problem in the market of not been able to make change, to fix this problem the use of electronic gold and silver backed currency may be a solution. The digital economy is truly upon us and is here to stay. It aims for a better overall economic and financial market conditions. Confidently, gold and silver can find its way back onto the global financial stage, I what form is yet to be seen, Physical coins, a backer to either an electronic currency or a new paper currency.
On the other hand, the alternative currencies and alternative banking movement is a large treat to the current fiat currency regime of many of the worlds developed nations. These nations will do everything in their power to stop the rise of gold and silver been used as a banking medium or a store of wealth, as it undermines their ability to control the flow of money and the ability to tax and transfer wealth amongst it peoples. Governments have in the past made laws banning the owning of gold and silver, they may again, so you will want to be prepared for this and hold your gold and silver in a way that they can not legally take it from you.
The opportunity for you is to look forward and see what holding gold and silver may do for you. Having gold and silver as part of an insurance policy against economic collapse is not a bad idea, having a few coins on hand in your travel case is a good idea as well, as if there is no means to get local currency from your general accounts you will have the fall back of these coins to trade for local currency.
Gold and silver has been a medium of exchange for many centuries and it will again be, but in what form is the key.