Gold is money

Gold is money

Gold has always been and will always be treasured, but using it as a money problem. Today there are articles in the financial press that some countries (usually small) is going to go on a gold standard. That means you can turn in your paper certificates for a certain amount of gold.

Nixon finally killed off the U.S. gold
standard in 1971. 99.9% of the public will
idea what that means - and more. As
while their paper dollars are redeemable for
goods and services that care. Federal
Fed continues to print more and more dollars
supported by accounts - nothing. Excuse me, "Until
full faith and integrity of government. "These
is still hot air.

Is there a solution to the manufacturer,
manufacturer or service company that will protect
diluting it from continuing on paper
currencies? Not only in the U.S., but each
country in the world has its own printing presses
working at full capacity.

If the manufacturer wants to protect its
currency sales decline of his country
he could price his product in ounces of gold.

ABC company sells supplements and has a contract
to deliver 10,000 checks per month
next 5 years at a fixed price of $ 10 each. He
has guaranteed sales of $ 100,000 per month
but over the next 5 years inflation
currency depreciate a minimum of 2%
year (given guidance of the Federal
Reserve) is slowly removing the $ 2,000 monthly
removal in the fifth year $ 10,000 per month
purchasing power.

ABC, decided to write to the contract not in
in local currency (dollar, yen, euro, etc.), but
in ounces of gold per unit of widget. At today's
gold price of around $ 500/ounce each
element is .02/ounce or 200 grams
gold per month. Payment need not be
in metal, but can be converted back into
in local currency. We do not transfer takes gold
place.

There are talks of converting oil payments
in gold, but not enough gold to do so
For more than a few days. Imagine Gold Prices
at 8.333 ounces per barrel?

If this type of transaction becomes common
place (and it can) will have a pot
plate paragraph explaining settlement agreement
terms. It's not there yet.

The buyer and seller may be leery of
this procedure as there is no fixed gold price
makes speculation about each side. The
long-term contract for greater probability of
Seller will select the idea to protect his
revenue base. All central banks will hate it as
exposes the lie of fiat currencies.

As the public becomes aware of the reduction of
value of fiat currencies they will also become
aware that the only real money is gold.



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