Monday, January 17, 2022

Why Did the World Choose a Gold Standard Instead of a Silver Standard?

by Ryan McMaken, Mises Institute:

Among those who support the end of government fiat money, it’s not uncommon to hear and see claims that gold is “the best money” or “natural money” or the only substance that’s really suited to be commodity money. In many of these cases, when they say “gold” they mean gold, and not silver, platinum, or any other precious metal.

Naturally, one can expect to encounter these claims among those who have made a living out of promoting gold and gold-related investments for commercial purposes.

For example, consider Nathan Lewis’s 2020 article at Forbes titled “Gold Has Always Been the Best Money.” Lewis contends that gold and not silver is obviously the best money and that its adoption as the metal behind the nineteenth-century gold standard was more or less inevitable and based on the alleged intrinsic superiority of gold as money. He writes:

A New Year For Comex Gold

by Craig Hemke, Sprott Money:

After a disappointing 2021, the new year for precious metals likely holds a return to the bull market gains seen in 2019 and 2020.

So welcome to 2022. Yes, 2021 was a lousy year for both COMEX gold and COMEX silver. Both posted negative returns, with COMEX silver falling nearly 12%; however, and as you can see below in this chart provided by Ronni Stoeferle, a negative year during a bull market for the COMEX gold price is not unusual. What is unusual is two negative years in a row. Check the periods 2007-2012 and 2016-present.

FUNDAMENTALS FOR GOLD AND SILVER STILL STRONG AS NEW YEAR BEGINS

by James Corbett, The International Forecaster:

Hope your holiday season was safe, fun and relaxing and that your new year is off to a good start.

Gold and silver prices fell 3.5% and 11.5%, respectively, last year – and started the first official trading day of 2022 down another 2ish percent.

Nevertheless, they’re still a solid – perhaps the best – place to have your savings, especially for the long run.

Why? Because the fundamentals of gold and silver remain strong as we embark on another year of work, play and investing for the future.

Proof Is in the Fundamentals

Jay Taylor: The Interest Rate That Breaks The Markets

by John Rubino, Dollar Collapse:

If there was one word that caught the mainstream market off guard in 2021 it was “inflation.” My Inflation-Deflation Index finished near the high for the year at 190.34.

But of course when the word inflation is mentioned most people think of the CPI. More from an Austrian economic perspective, I view the massive rise in stocks and bonds as a major component of inflation that is ignored by the mainstream. But it is at the heart of the massive redistribution of wealth from the middle class to the elite, and Nancy Pelosi absolutely loves the ability to use insider information to get rich. Based on a Periodic Transaction Report that members of Congress are required to file, she has purchased millions in call options in Google, Micron, Roblox, Salesforce, and Disney.