The gold standard prevents central banks from pursuing policies that can ensure stability in the economy in the event of distortions. This is because the gold standard determines the money supply. And central banks would find it difficult to lower or raise interest rates. On the other hand, there is the advantage that the money printing machine cannot work endlessly - which in turn can lead to distortions in economic stability. The decisive factor with money, however, is not its growth rate but its purchasing power. In a free market, money is like a commodity, and the U.S. dollar and other currencies are not independent entities. Incidentally, the name U.S. dollar was used before 1933 to refer to a unit of gold that weighed 23.22 grains or 1.50 grams. Other currencies also stood for a certain amount of gold.
In a barter economy, gold is exchanged for goods and services. Gold is part of wealth, then as now, it enhances the life and well-being of the individual. If money increases without cover, then there is an increase in the production of goods. If money created out of nothing decreases, production also decreases. Central bank policies to stabilize the economy cause boom and bust cycles (the economy grows and then comes back). The gold standard does not cause instability. Gold is a stable means of preserving value, therefore popular with investors. Investors can definitely add value to their portfolio with values of gold companies. Maple Gold Mines or Caledonia Mining could be considered.
Maple Gold Mines - https://www.youtube.com/watch?v=bDYx1XbEphA -, along with partner Agnico Eagle (50/50), is advancing the prospective Douay and Joutel projects in the Abitibi greenstone belt in Quebec.
Caledonia Mining - https://www.youtube.com/watch?v=kNcPzXxVTno -, with a 64 percent stake in the Blanket mine in Zimbabwe, has been one of the successful gold producers for years.
Current corporate information and press releases from Maple Gold Mines (- https://www.resource-capital.ch/en/companies/maple-gold-mines-ltd/ -) and Caledonia Mining (- https://www.resource-capital.ch/en/companies/caledonia-mining-corp/ -).
In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.
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