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Gold Is The Ultimate form of payment – No counter party risk


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Gold still represents the ultimate form of payment in the world." - Alan Greenspan, Testimony before US House Banking Committee, May 1999

Gold has been used as money for thousands of years, it may have even been the first metal used by humans. A funny detail concerns the oldest known map called the Turin Papyrus, an ancient Egyptian mining map 1320 -1300 BC, which is showing the plan of a gold mine together with indications of the local geology.

The bottom line is that gold has retained its purchasing power over thousands of years and therefore has proven itself as the ultimate protection of wealth. Gold has no counter party risk, gold is not some one else’s liability, gold can not be printed out of thin air, no nation has the capability to destroy the value of gold, gold does speak for itself.

Some one who understood gold’s real value against paper money very well is former French President Charles de Gaulle:

There can be no other criterion, no other standard than gold. 
Yes, gold which never changes, which can be turned into ingots 
bars, coins, which has no nationality and which is eternally and 
universally accepted as the unalterable fiduciary value par exellence” 
Charles de Gaulle
In February 1965, President De Gaulle said in a landmark press conference “What the United States owes to foreign countries, it pays, at least in part, with dollars that it can simply issue if it chooses to”.
De Gaulle not too happy with the implication of having the dollar as the reserve currency responded this way:

Since dollars could still be exchanged for gold at the time, De Gaulle instructed the Banque de France to increase the rate at which new dollars were converted to gold bullion and sent the French navy across the Atlantic to hand over dollars and pick up gold bullion in exchange. In 1965 alone, the French navy ferried back over $150 million of gold bullion thereby increasing the proportion of French national reserves held in gold from 71.4% to 91.9%.

The bottom line is that De Gaulle didn’t trust the paper dollar which were circulating in ever increasing quantities and opted for real money which is of course gold.

History leaves no doubt it. The only money that stood the test of time is gold, all other currencies have failed. Gold is the only true protection of wealth.

Eric Hommelberg

The Gold Drivers Report

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