Though this article was written in 2001 - but the laws governing the Gold markets still have these underpinnings if we ignore the demand from East.
Source: Gold-eagle.com
As we examine 6000 years of monetary history, several very clear "Monetary Constants" seem to emerge. These very same constants have appeared throughout time and millennia, regardless of the empire, ruler or social structure of the day. While there are several, three of these constants are important to our journey into history today;
- Money is the result of the function of the free market. As long as man has traded his goods and services in a market place, money (or a medium of exchange) has always emerged as a result of this free market process. Almost without exception, gold and silver have always appeared as the "free market money" of choice. No other form of money has functioned as well or as long as the precious metals. Gold, reserved for larger transactions and international trade, and silver, the money of everyday trade, have emerged naturally and not as the result of some government or ruler's decree.
No comments:
Post a Comment