0
likes
Currency, govt bonds, and treasury bills are not money. They are money’s worth, and if a country’s economy is hit by a recession, the country’s currency, govt bonds, etc., will not be worth their book value. Whereas gold is itself money. Gold backs the economy and currency.
The US removed the gold standard in 1973 because they did not really have that amount of gold to print dollars, so they removed it. This led to the modern fiat currency system which we use today. (Fiat currency is a currency which is based on trust and not backed by any commodity.)
Germany has 1,000 tonnes of gold and France has 1,200 tonnes with the US FED. Recently, they refused to give it back.
And India, our home country, which was known as the “Sone Ki Chidiya,” was looted by the British East India Company of gold worth $45 trillion.
