Why doe everybody want gold?

The value of Gold to capitalism

Gold is on average the highest price commodity on the planet, gold actually plays a important role in our society and government structures financing. The simple answer to why everybody wants the gold is to sell it back to the government for more money.

Why does the Government want the gold?

Most Government's can only have as much money in circulation as they have in gold reserves and the same value in credit. For example if the government has £600 Billion in gold reserves it can have £1,200 Billion in credit and cash.

Financially speaking the laws of capitalism are made to be broken, due to interest and inflation something will have to be broken in time. Capitalism and laws around our credit system have many faults that contradict each other, for the credit system to continue something has a be amended.

Capitalism will crash unless interest is illegal or there are no boundaries on how much can be pumped into the system. Both of these scenarios are catastrophic to society and capitalism, without interest nobody can profit and without a cap on how much is in the system any country can virtually begin to over thrown another financially for power.

Nothing is being done about this inevitable collapse of capitalism which is why people are always coming up with conspiracy theories. Theories such as biological control, making diseases and small illnesses to kill a small percent of the population. War not only kills people but also enables weapons manufacturers to make money, weapons manufacturers are usually owned by somebody in tight with the government and their plans. Why do they want to kill off the population? Less people = less money, the rich want to stay rich and stop the poor from killing the system by borrowing and inflating a floored programme that they have.

Supernova explosion

How gold is formed

Gold is an amazing substance which we cannot manufacture from scratch. otherwise known as element 79 gold is actually originated from supernova explosions. The explosion of another planet that has gone supernova needs to land on another planet and then form with other specific chemicals to make gold. This is why we need to mine for gold and find very small amounts, over thousands of years gold is hiding as rocks re-shape our landscape and covers gold.

The rarity is sometimes overlooked of gold, 24 karat gold is so rare that the entire planets gold in circulation wouldn't even fill 1 Olympic swimming pool.

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Comments 7 comments

WillStarr profile image

WillStarr 3 years ago from Phoenix, Arizona

Gold, unlike a piece of paper, has its own, intrinsic value, and so wise people keep at least part of their savings in gold (or some other precious commodity, such as silver or platinum), as a hedge against the inflation of paper money or even total collapse.

Paper money is only worth what a buyer and seller agree that it is worth. The American dollar is currently worth about four cents, which is why it takes twenty five paper dollars to buy one silver dollar.


Troyangeluk profile image

Troyangeluk 3 years ago from UK Author

thanks for the comment willstar, I would keep hold of the silver dollar should be worth tree times that in 5 years ;).


WillStarr profile image

WillStarr 3 years ago from Phoenix, Arizona

The actual value of gold and silver is little changed over the centuries. An ounce of gold would buy so many bushels of grain in biblical times and it still buys about the same, depending on costs and on the crop season. One oz. of gold bought a top quality man's suit two hundred years ago and still does today.

It's the value of the paper money that changes. Try to think of it that way, and it will make sense.


Troyangeluk profile image

Troyangeluk 3 years ago from UK Author

the value doesn't really change much but the issue is that we are restricted to how much money we can have in circulation and the amount of gold we have determines this. Inflation is inevitable purely because of interest. What is interest? This is all I was trying to point out, the governement want the gold because they can't control the demand on the paper money.( because of the rules that you can only have as much money in the system as they have gold).


WillStarr profile image

WillStarr 3 years ago from Phoenix, Arizona

I'll think you'll find that your British Pound, like our Dollar, is not backed by anything. The best way to tell is to ask a bank if they will honor your paper with silver or gold. If not, we are in the same boat (and we are!).

Your gold reserves are for international trading only.


Troyangeluk profile image

Troyangeluk 3 years ago from UK Author

That may be true, all I know is the system is 50% gold 50% credit so our money would just be credit. All im stating is the 50% credit can't increase unless the 50% gold does, people borrow money, interest is added which causes inflation, this mean 600 billion of gold reserves and 600 billion of credit is already faulting because theres now more than 600 billion of credit in the system. The rich will get richer and the poorer will be ruined but the main issue is that gradually more and more will cash will become virtualcredit. 4% of the worlds money is cash because of this and is leaving many in a recesion.


Troyangeluk profile image

Troyangeluk 3 years ago from UK Author

hubpages is beginning to suck, everything is being taken off of hubpages purely because there isn't huge traffic or a high quantity of comments.

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