The concept of REAL money $$$
-
In the 1900s, money is really made from precious metals like gold and silver. 1-dollar coins were made from an ounce silver. 20-dollars coins were made from an ounce gold. Those were the days when a burger costs 5 cents, a stay in a hotel costs $1.50, dinner at a restaurant costs 75 cents.....
Until maybe someone complained that they were too heavy to carry around, then the Central Banks said, "ok, I store the gold and silver for you in my storeroom while I issue you a piece of paper that represent a ounce of gold/silver in my storeroom."
Thus "banknotes" were born and till today, it evolved to become "currency notes".
Common sense tells you, the amount of gold/silver stored in central banks must tally with the amount of notes printed, right? But not quite in the case of "Omerica". They have too much debts and printed too many currency notes. Nowadays, many other central banks are holding on to their precious metals.
So now you tell me, would you prefer to hold a piece of paper or the actual precious metal?
You decide..... lol
-
PS: There is another concept, in REAL terms, gold has not risen. If you observe gold spot, it is gold against USD.
Hence when USD falls (as it has been continually falling all these years), gold "rises" because it now takes much more USD to buy the same amount of gold - 1 ounce of gold.
In the year 1909 (exactly 100 years ago), gold is only US$20.67 per ounce. Which is why 1 ounce gold coins have face value of 20-dollars. Compare to today, it takes US$950+ to US$1,000+ to buy 1 ounce of gold - gold has "risen" 45 times than it was 100 years ago!!