Nick Barisheff: Gold and pork bellies

The former is always money, the latter is breakfast.

* * *

By Nick Barisheff
BMG Bullion, Markham, Ontario, Canada
Tuesday, July 26, 2016

Many investors and their financial advisors consider gold to be a commodity, which makes gold no different than copper, timber, pork bellies, or orange juice. They do not understand, or simply are unaware, that gold has been successfully used as money for more than 3,000 years. Although some people think gold is an archaic relic, the facts don't support this view.

So, what is money?

Gold is traded on the currency desks of all major banks and brokerages, along with dollars, euros, yen, and pounds, and not on the commodity desks along with other commodities. The foreign exchange traders know gold is money.

On the balance sheets of all central banks, gold is classified as a monetary asset, along with their foreign currency reserves. The central bankers know gold is money. Central banks do not hold any other commodity as part of their reserves.

Alan Greenspan knows gold is money, as he laid out in his famous article "Gold and Economic Freedom," written in 1966 before he became chairman of the Federal Reserve. ...

... For the remainder of the commentary:

http://bmgbullion.com/gold-pork-bellies/