https://youtubetranscript.com/?v=Q-5GORxIJPI
One of the reasons that people are so arrogant, particularly in America, that the dollar status is not in jeopardy and so that we can keep on running these huge deficits, we can keep on creating inflation and the world’s got no choice, right? But to stick with the dollar because are they gonna go to the Euro? Are they gonna go to the yen? You know, the pound, I mean, the renminbi. I agree, all of those currencies also have problems. And so do you really wanna switch from one flawed fiat currency to another, even if those other fiat currencies may be less flawed than the dollar, right? Do you really wanna make that shift? I don’t think that that’s what’s going to happen. What everybody is missing is that there is an alternative to the dollar that doesn’t involve another fiat currency. And that’s gold, that is real money. Everybody forgets that for thousands of years, gold was money. It was money because it worked. Now, over the course of time, we had paper currencies that would rise and fall. I mean, hundreds of years ago, they were paper currencies that are now worthless that you don’t even know their names. You know, they come and go, but gold has stayed. You know, gold works as money. And so I think what these central banks are going to do is as they get out of dollars, they will just increase their holdings of gold. Gold will be the monetary anchor. Gold will be the reserve monetary asset, just the way it was before the dollar. It wasn’t the British pound. I mean, the British pound was a dominant currency, but gold was what everybody owned. The British backed the pound. Do you see any evidence that some of these alternate currencies are starting to back their currency claims with gold? Oh yeah, you can. What’s happening on the? Central banks are now buying more gold than they’ve bought. In decades, especially a lot of the emerging market countries, not even maybe so much the United States isn’t buying any gold, and maybe some of the more mature countries, but a lot of other countries that had predominantly held dollars and then to a lower degree, euros or yen or pounds, these countries are increasingly buying gold. That’s why gold is at a record high. And gold’s around 10 bill. Okay, so people might object, and they have, that, well, gold is just another arbitrary standard of value. It has some intrinsic worth. It’s useful for jewelry. It’s useful for certain industrial applications. But it’s just another psychologically valuable currency without any intrinsic value. And so it shouldn’t be a repository of value in principle that’s any more stable than, let’s say, a well-managed or even a badly managed fiat currency. And so what do you, why is it that gold has proved itself, let’s say, over centuries or millennia as a storehouse of value? What is it about gold intrinsically, let’s say, that seems to have given it that edge? The idea that gold doesn’t have any intrinsic value is just pure nonsense. It’s obviously politicians have a vested interest in trying to diminish gold as a monetary alternative to the fiat system. And even now you have a lot of cryptocurrency enthusiasts who say the same thing. Well, you know, gold has no value because they want to justify something like Bitcoin, which also has no value, and say, well, gold worked as money and it has no value, so Bitcoin could work. Well, it’s not true that gold has no value. Gold is the most valuable, the most useful metal on the periodic table. Gold became money because it was such a valuable commodity. But gold has a lot of properties that make it uniquely qualified to be money more so than other commodities. That’s why gold was so successful over the centuries as money because people preferred to use it as money. It wasn’t governments that decided gold is gonna be money. The people decided that gold was gonna be money. And once the people decided that gold was gonna be money, if you were a king, you know, well, you would tax people in gold because if you wanted to pay your soldiers to protect you, your soldiers wanted gold, right? So it was the money created in the free market and it beat out all other forms of money because gold, you know, a gold coin, they’re all the same. You can melt gold down and you can make it into coins. It’s fungible, it’s portable, it’s divisible. But the other aspect of gold, that is the key. You can save gold because if I have an ounce of gold in a hundred years, in a thousand years, it’s exactly the same. It doesn’t lose any of its properties. And in fact, even if I take my gold and I make a ring out of it or I use it to make a watch, right? You can melt this ring down and you get your gold back and it’s exactly the way it was. You could do something else with it. There’s really no other metal. You can keep using it over and over and over again. I mean, they fill teeth with gold. If you find somebody buried in the ground, you know, you could take their fillings and you know, the gold’s still there. You know, treasure ships from the 1400s, 1500s, they sink. If they recover the wreckage, the only thing that’s still there is the gold. It looks exactly the way it looked when the ship sank 500 years ago. So from a point of savings, because money has to satisfy three primary conditions. Two of them are a unit of account and a medium of exchange. But the third one is to store a value. And that’s important because it also makes it possible to do loans that I can borrow money, you can lend money, and you can be repaid. And you know that the money that you’re gonna get repaid is gonna retain its value. And so that’s something that gold does better than other metals. But the value of gold, even if I’m not using my gold today as a metal, let’s say I have gold stored in a safe and you say, well, you know, you’re not using it for anything. That’s true. But I’m preserving the future use of that gold. Somebody in the future is gonna need that gold. And so I’m storing it right now. Because you know, there are more uses for gold that are discovered all the time because of its very unique properties. I’m sure in 100 years or 1000 years, there will be more uses for gold than there are now.