In an era of runaway government debt levels, zero-to-negative interest rates, and systemic risks in the artificially propped-up banking system, the case for a new monetary order based on a gold-silver standard is as strong as ever.
The above edited excerpt, and the copy below, comes from an article* by Stefan Gleason (moneymetals.com) originally posted on SilverSeek.com under the title The Forgotten History (and Potential Future) of Silver as Money. The original article, which can be accessed HERE, also outlines the historic role of silver as money and is a very interesting read for anyone who advocates a staunch sound money policy.
In the battle to resurrect sound money, both silver and gold will play a role.
- Gold is necessary because it represents a highly concentrated form of wealth. Gold is more practical than silver for hoarding by wealthy individuals, large institutions, and, yes, central banks…
- Silver is necessary because it’s the historic, and still most practical, basis for defining a “dollar.” It isn’t necessary for actual silver dimes and quarters to be re-introduced into circulation in order for silver to function again as money. Debit cards and smartphone apps linked to accounts backed by silver (and redeemable in physical silver) are in development. Some governments are even considering proposals to link their currencies partially back to silver.
People who equate sound money with gold and tout the advantages of returning to a gold standard should also embrace silver as a complementary – and necessary – partner with gold in re-establishing sound money.
Given silver’s low price ratio versus gold (currently only 1:73 versus the classic 1:16), it makes a lot of sense to favor silver as an undervalued monetary asset.
Related Article from the munKNEE Vault:
A true solution to both fiat currencies and the shock of their demise exists right now, if only the leaders of the world’s nations were able to recognize it. Believe it or not, it’s the Mexican Libertad. Let me explain its design and usage and how it could easily become the foundation of a new non-fiat international currency.