Quote:
Originally Posted by The Demon
If you take a look back at most civilization collapses that had to do with finances, it's because they went off gold or silver and started using some kind of paper currency. Now Pre WW1 Gold Standard was not the same thing as post WW1 Gold Standard, which was a perversion and doomed to fail. Also, not many people held physical gold at that time.
That's why before there were fiat currencies, there was gold and silver, as well as barter systems.
This is completely inaccurate. Gold is the only precious metal without any real industrial use so it's ONLY use is a medium of exchange and a store of wealth.
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Before the fiat currencies, we traded anything and everything. Historically, not everyone put value on gold. You could be wealthy and not own a lick of gold, back then just like today. As you said, not many 'people' held physical gold back then, however they did business and wealth was produced
Gold is used in damn near every electronic produced in the world today. From your TV, to your Stove, to your phone, to the smoke detector, your car and lots in your Computer and monitors. Under water and space exploration use gold heavily, many major industries (oil) use gold.
We have so much gold... you throw it in the trash when you're done with it.