The Moscow World Standard is a proposal by Russia to create a new precious metals pricing standard to rival the London Bullion Market Association (LBMA) and the Commodity Exchange (COMEX). The argument is that the LBMA and COMEX are using leveraged shorts to suppress the price of gold. As a major exporter of gold, Russia …
Fiat currency is bad for many more reasons beyond the obvious one – that it loses purchasing power due to inflation. It has many other negative economic, political and social qualities. However, it is important to acknowledge the one benefit of fiat currency. Many hard money advocates don’t want to admit that fiat has any …
The short answer is that fiat currency is backed by the government that issues it. The government declares the fiat currency to be legal tender and mandates that its population pay their taxes in that currency. This requirement, alongside the recognition that the currency is given by the market as a means of exchange and …
The Sherman Silver Purchase Act of 1890 compelled the US Treasury to purchase 4.5 million ounces of silver per month. This was designed to support the falling price of silver and was one episode in a long battle in US monetary politics between proponents of bimetallism and proponents of a mono-metallic gold standard. The Sherman …
3 Lessons From The Sherman Silver Purchase Act Of 1890 Read More »
The Roman denarius was the most important coin of its time and one of the most famous coins in history. Its extensive circulation across the vast reaches of the Roman Empire demonstrates the success of silver as a monetary medium. Yet, the tale of the denarius is also one of debasement, inflation and monetary collapse. …
The Federal Reserve Notes that currently circulate as currency only became the exclusive legal tender of the United States in 1971. Before that, the United States had a number of different types of currency that co-existed. At various times gold and silver have been money, as well as a variety of paper currencies. Changes in …
[Disclaimer: I own physical gold, physical silver and physical platinum. This is not investment advice and is provided for information only. It is not a recommendation to buy. Do your own research and consult a financial advisor.] The best precious metal to invest in depends on your goals. Many, choose to invest in precious metals …
Value investing and technical analysis are often mistakenly seen as being at odds with one another. After all value investing is based on a fundamental analysis of a company’s valuation as compared to the market price of the stock. Value investors look for high quality companies that are trading at a discount. Technical analysis on …
How Value Investing Can Benefit From Technical Analysis Read More »
The term “sound money” refers to a type of money which acts as a reliable store of value over time where it is difficult to dilute the supply and therefore the value with new units. The soundness of money depends on how well it retains its value and how difficult it is to increase the …
Fiat currency is an attractive thing for a government. They can use it to transfer wealth from the future to the present and therefore they can spend beyond their means. Taxation and borrowing have limitations, but creating new units of currency is a much easier method of government financing. Unfortunately for governments there is one …
A Short History of Fiat Currency Failures: 9 Currencies That Have Collapsed Read More »