(ZERO HEDGE) A world reserve currency is supposed to be superior in storing value, but through boundless money-printing the U.S. dollar hasn’t been able to compete with gold by a long shot...
In 1932 the gold price was $20.67 dollars per troy ounce, today it crossed $2,067 dollars.
Gold doesn’t yield, if you don’t lend it, but it's the only globally accepted financial asset without counterparty risk. Because of its immutable properties gold sustained its role as the sun in our monetary cosmos after the gold standard was abandoned in 1971. Central banks around the world kept holding on to their gold, despite its price reaching all-time highs such as now. This is due to Gresham’s law, which states “bad money drives out good.” If the price of gold rises central banks are more inclined to hoard gold (good money) and spend currency that declines in value (bad money).
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