The Gold Standard

November 11, 2010 – As the G20 wrestles with the crisis in global currencies, unprecedented numbers of investors in gold coins are taking the matter into their own hands. World Bank President Robert Zoellick has called for financial leaders to reinvent the global monetary system, in which he believes gold should play a prominent role. In essence Zoellick is saying that gold can do for the global market what gold coins do for the individual investor – hedge against inflation and uncertainty in currencies.

Crises such as that in the Asian market from 1997 to 1998 and that which we face today are troubling, but not unexpected. The vast chasm between stagnant and strongly growing economies has to be bridged before any sense of stability can be achieved on a global level. Only sustained universal growth can produce stability, and traditional economic models that have become obsolete under globalization cannot solve the problem. It will take many years of trial and error before new models evolve that are capable of consistently moderating the global economy.

The overwhelming majority of financial experts believe that a return to the gold standard is not an option, but they agree with Zoellick that the consistent performance of record levels of gold investments prove that the metal could be instrumental in taming the currency exchange. Many see gold as a monetary asset rather than a commodity, and in a practical sense gold has already been established as a universal currency.

The world’s financial leaders have an opportunity to take immediate action with a strong possibility of bringing the currency crisis under control. Adding gold to baskets of currency would go a long way towards leveling out inconsistencies and providing a universally accepted standard for relative evaluation.

To achieve the same results, of course, the individual investor need only buy gold coins.

Kevin Johnson

Senior Staff Writer – GoldCoin.net