Gold Investment: What is the "monetisation" of debt?

Gold Investment - 29 August 2011

Throughout historical times, many people have considered gold and silver to be the currency of choice. This is because both these commodities are very marketable and much sought after. Labor was measured against these metals. Sadly, unscrupulous kings would debase money for their own greedy needs. King Henry VIII was the last king to do this.

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Invest in precious metals today! Contact us for details.

Governments around the world seem to be moving back to the practice of kings of days gone by as they are monetizing the debt by printing money at will. The fancy term for this is known as quantitative easing (QE). Back in 1971, Richard Nixon severed the last link to gold as he was struggling to pay for America's latest war. Subsequently, the value of paper money has slowly eroded and this underlines the weakness of a fiat currency system.

Invest in precious metals today! Contact us for details.

Invest in precious metals today! Contact us for details.

Many people are turning to gold as they feel much safer trading in this way. Fiat money has lost much of its buying power and gold has gone in the opposite direction. A year ago you could buy $1200 worth of goods with an ounce of gold and today that same ounce will buy you $1800 worth of gold. People who have large investments are smiling all the way to the bank. Politicians around the world are going to find it increasingly difficult to manage their debt with paper money alone. Many experts feel that it is only a question of time before the entire global monetary system will have to be changed. 

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