Gold as Currency and Safe Haven

One of the more positive results of the economic crisis we face is abn increasing number of people are better understanding the overall scheme of economics, currencies, the central banks, and gold.

Gold prices today have risen to just under record levels, and that alone is good news, not just for gains made by investors, but because it reveals people in general are starting to see that historically gold has been the most durable asset that has existed; going back thousands of years.

But just as important is the understanding that the Federal Reserve and other central banks around the world are a major problem in the health of our economic system, and the endless printing of money by central banks had done as much harm to the global economy as anything else, and probably more.

Another great benefit is people are beginning to see that paper currencies aren't worth much, and gold is far more valuable and safe than it will ever be.

All of this is important because our generation, for the most part, haven't experienced this depth of economic chaos in their lifetimes, and it has brought to the surface the underlying causes which few have taken time to search out. Now they are, and it's doubtful it'll ever return to the naive practices of the past without being challenged.

Gold is safe because it holds its value and can be used as currency at any time, in the sense if things get so bad that the financial system breaks down, which it in reality could. This is why a growing number of people are acquiring physical gold to not only protect their wealth, but to have a means of exchange if things go that sour.

If nothing else, hopefully this crisis will change the understanding of our financial system and help people to see what needs to be changed after decades of Keynesianism has let us to where we are today.