Classical Economics in a Quantum World
Understanding Gold 8 There’s a very odd thing about a gold standard. Hardly anyone understands it, least of all economists. It’s not like there is no record of the previous three centuries. From the late 1600s until the 1970s, major…
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Understanding Gold 7 The Ratio of Two Ratios The unique properties of gold combined with how the Fed operates determines the dollar price of gold (POG). Similarly, other central banks’ monetary management determines the POG in their currency. Because gold…
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Giovanni Capriglione came to his understanding of gold the way most do. He opened his eyes and looked around. The world does not always shape to the narrative that the educational system instructs and that government institutions desire. His mother is from Venezuela,…
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Understanding Gold 6 Gold’s many properties define it as a monetary proxy. Gold has no real use other than its role as a monetary commodity. Mankind selected it for this role because history has proven the stability of its value. …
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There is a palpable glee among some that is evident whenever the price of gold falls.¹ It manifests itself in the media, academia, pundits, and certain segments of the investment world. Paul Krugman becomes orgasmic. A fall in the price…
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Understanding Gold 5 I deem the idea that everyone understands gold’s value but few understand why it has value, the gold paradox. The primary reason is that academia, over the last 80 years, has increasingly dismissed gold as a monetary…
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Understanding Gold 4 On August 15, 1971, Nixon, by executive order, broke the dollar-gold link that had anchored the Bretton Woods international monetary system since 1944. (The link was officially severed in February 1973.) This was the beginning of the…
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Understanding Gold 3 As Warren pithily observed, gold does get dug out of the ground. Not just in Africa. Gold is found on every continent on earth. This is one of gold’s many monetary properties. If one is looking for…
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Understanding Gold 2 Gold gets dug out of the ground in Africa, or some place. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching…
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Understanding Gold 1 There is an interesting paradox to gold. Virtually everyone on the planet inherently understands gold and recognizes its monetary value. There is nowhere on the planet where this is not true. From the deepest jungles, remote areas…
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