At one time the dollar was directly tied to gold. Other currencies were based on ours and thus there was a ‘gold standard’. The gold standard was abandoned in 1933 by President Franklin Roosevelt in efforts to combat the Great Depression. The final ties between gold and the dollar were severed in 1971 when Nixon ended foreign exchange of dollars for gold. Since then our paper money system has been backed by the government rather than gold or another asset. This allowed for the printing of more money even though there wasn’t enough gold to back it up. Exchange rates between nations fluctuates as there is no longer a standard.
As an asset gold certainly has a unique and plentiful list of favorable qualities. It has a long shelf life, it can be stored thousands of years. Gold is durable, it won’t be damaged by fire or flood. It doesn’t require maintenance or feeding or fertilizing. It is divisible, value dense and needs no upkeep to retain its value. Gold has proven itself desirable for thousands of years worldwide. It also lends to privacy as you can control who knows you have it. Gold will have value regardless of government collapse. Gold cannot be printed, counterfeited or inflated. It does not defraud its investors. Gold as a physical possession does not depend on anyone to fulfill a contract. Gold doesn’t need any country or institute to validate its value.
Much of our financial security relies on people, companies and governments to fulfill their end of the deal. We count on someone or something else to come through for us when called upon. We expect fairness. If there is one thing I have learned in life, it’s that things aren’t fair. Fairness is not a blanket rule applied uniformly. Owning a mining claim gives you the right to discover, recover and retain your own gold; providing tangible financial security.