Important: What the Price of Gold is Telling Us
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A currency system based on precious metals is every bit as illogical as one based on paper. The value of gold is purely speculative in the same way as the value of paper money - and central banks control the price of gold by buying and hoarding it in the same way.
And then there's the simple fact that the world economy operates far more efficiently, creating more jobs, alliviating poverty more effectively, without currencies being limited in such a way.
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A currency system based on precious metals is every bit as illogical as one based on paper. The value of gold is purely speculative in the same way as the value of paper money - and central banks control the price of gold by buying and hoarding it in the same way.
And then there's the simple fact that the world economy operates far more efficiently, creating more jobs, alliviating poverty more effectively, without currencies being limited in such a way.
Peace,
Agreed Mr. Mahmud. Money is a means of exchange, it is meant to facillitate trade. As you know within the last year the price of gold has fluctuated depending on the stock market and is very speculative. Besides, there is not enough gold left in the world to be mined and to be kept as reserve for notes. I also doubt it could be done with silver.
Money should have value because it is good for the payment of taxes and because there is an amount proportional to the population of the country in circulation. There is nothing wrong with fiat currency.
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paper money would be fine if it was actually tied to something, e.g. gold. This was done in the past until this link was broken.
The current way gold is priced has a little speculation in it but not as much as fiat currencies, and this would likely reduce under a gold backed system. Also in the long term, gold is more stable.
Besides, there is not enough gold left in the world to be mined and to be kept as reserve for notes. I also doubt it could be done with silver.
Conjecture. Any precious metal could be used if it met criteria.
Why are most of the investors now turning back to buying gold at the moment? Simple, they all recognise it has intrinsic value, unlike fiat currency which can collapse to a value of effectively zero. This is proven fact, see Iceland or Zimbabwe as examples.
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I'm 4 years late to this, but last year read Ron Pauls two books and found my view on politics, tax, and money transformed.
I've read much more since on money, and that has led me to the same conclusions of abolishing of fractional reserve banking, fiat currency, and usury as discussed here.
Pity the original poster is no longer here. He was well ahead of the curve.
The collapse of the financial system is near. The most massive transfer of wealth in history will occur around this event. The only way to become a winner is to hold precious metals. Sell all your stocks (non gold mining ones), reduce debts, fix your interest rates, and buy silver and gold.
Do your own research as I dont offer absolute advice, but I think it would be a fool who reads about and then ignores the coming collapse.
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peace truth,
Nice to see you post bro )
If you have not seen these already, check them out
Money as Debt
http//video.google.com/videoplay?docid=5352106773770802849#The Money Masters
http//video.google.com/videoplay?docid=-515319560256183936#It is also possible to buy these on DVD, and one could thereafter distribute them locally/nationally/etc. I did think about doing this, but I am swamped at the moment with other projects.
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The problem is buying gold. Just gold, not jewelery. And storing it it too. I would also like to buy silver. In America they have midas resources (inforwars.com links to it). However, in the UK, apart from the odd buy on ebay, it is very difficult.
Anyone have an ideas?
Roshan
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Salaam,
before you can understand the Islamic concept of economics you must first understand ownership, the simple oft repeated concept within the Qur'an that Allah is the owner of all is explained in this short essay
http//servantofthelight.com/content/view/68/98/
