The Gold Standard and FedNow – What You Need To Know
Many gold enthusiasts support returning to a gold standard for stable money. However, fixed gold prices run counter to maximizing gold’s investment value. Freely floating gold prices allow for significant appreciation. This has occurred since former gold pegs ended in the early 1970s.
Under a gold standard, gold simply acts as a devaluing currency. Inflation and interest rates erode purchasing power over time. There is no investment upside in a fixed-price system. Gold standards throughout history have ultimately collapsed amid economic troubles.
Gold As An Investment
Gold not locked to currencies offers asset growth when economic and inflation fears arise. Yes, gold’s purchasing power still fluctuates. But its nominal price can rise dramatically, as evidenced in recent decades.
The Fed and central banks are often scapegoated for currency devaluation. In truth, all currencies lose value gradually. This is simply the nature of money.
Economic Volatility And The Federal Reserve
Recessions were more frequent and deeper in the pre-Fed era. Post-WW2, recessions have been less destructive with the Fed’s management. Perfect stability is impossible, but the Fed smoothes business cycles.
FedNow Service
New instant settlement system FedNow modernizes and quickens payments. It does not enable a feared digital currency or control over money.
In Fact, The FedNow Service will make physical metal more accessible to retail investors interested in metals investment.
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