Your choice: Gold Or Money ??

Once upon a time, man fulfill their needs taking directly from the nature. When the life is more complex and they start to find and made contact another societies which have new goods and commodities, the trade is created.


At first they trading by exchanging goods with other goods. For example meat with fish. Weapons with clothes, etc. Soon they realize that this is not practical. So, they create the tools of trade known as MONEY.


At the beginning money made of material that has been agreed that can be exchange with the goods they needs. The materials like shell or even carved stone become the money. Then they realize that those materials are not worthed and easy to be counterfeited. They try to find new materials that its value is equal with the goods they trade and anti counterfeit. Their choice is precious metal gold and silver.


The sparkling yellow gold that easy to form in to shapes and bright white silver enchanted their eyes. For centuries it's became the tools of trade, Investment, and financial security.


Bringing such of heavy metals in the trading journey is not only troublesome but also risky. They start to create a system where they can give their gold at a place and get a letter so he can take their gold at other appointed place. And the bank is created. In the further development The traders can give it to someone as a proof that he has the amount of gold in a certain bank and that person also can use it in trading without any needs to changes it into gold. That's where the time paper money is created and why it is also called the bank note.


Our paper money is the same letter that bank and everyone agreed can be used as the tools of trade. Thats's fine.  But as the tools of investment or financial security? Well let us figure it out.


When you sell a bar gold for $50, for example, you only receive a paper with $50 on it. The value of the paper itself perhaps only $00,5. Try to keep it for 2 years and buy the same amount of gold. Is it still in the same price? or may be not!  Actually the gold value is the same but the value of your money is declining, So you will feel that gold price is getting higher and higher every year.


Remember when your grandpa said that he can buy a huge house for $5000 in 1950's and right now even you cannot afford a small flat for the same amount of money? Yes, It's because the value of money is decline or what the guys in Wall Street call it "the inflation". But imagine if that time your grandpa buy that house with let's say as the same value of 300 grams of pure gold and today or tomorrow you have the same amount of Gold at the same content of course. You can buy the same house for sure.


So, Now it's your choice: Gold Or Money?