Gold is not, and never has been, a currency. Gold is something entirely different and far more valuable: It is money.
Gold is money because it cannot be created out of thin air by government decree. Unlike bonds, gold does not represent someone else's liability and, unlike stocks, gold does not rely on someone else's promise of performance. Gold is money because, unlike currencies, impatient monetary policymakers cannot simply print more.
Currency-denominated financial assets are a disaster waiting to happen. The current economic rebound is a mirage, being entirely dependent on something artificial and unsustainable: massive government spending. A new crisis is building out of unprecedented fiscal and monetary mismanagement. Fortunately, smart investors can protect their wealth from the coming storm. The true level of risk has not been priced into the markets. The time to shelter your wealth from the storm is now. And there is no safer investment on earth than bullion, because bullion is, and always will be, money
Nick discusses currency versus money; the decline of the world's currencies; how the media is using the wrong measuring stick; why the rate of currency decline is accelerating; the burgeoning world currency supply; the increasing risk of multiple sovereign debt defaults; the loss of the US dollar's purchasing power; the growing demand for real money; and why it's a mistake to view gold as a commodity.