Doug Casey on Why Gold Is Money

Trouble viewing this e-mail? [Click here to read it online]( [CASEY DAILY DISPATCH - Casey Research] Justin’s note: As longtime readers know, owning physical gold for the long term is one of our core recommendations here at Casey Research. Today, I’m sharing one of the most important essays on gold we’ve ever published. In it, Doug Casey shares five timeless reasons why gold is the best money… --------------------------------------------------------------- Doug Casey on Why Gold Is Money By Doug Casey, founder, Casey Research It’s an unfortunate historical anomaly that people think about the paper in their wallets as money. The dollar is, technically, a currency. A currency is a government substitute for money. But gold is money. Now, why do I say that? Historically, many things have been used as money. Cattle have been used as money in many societies, including Roman society. That’s where we get the word “pecuniary” from: the Latin word for a single head of cattle is pecus. Salt has been used as money, also in ancient Rome, and that’s where the word “salary” comes from; the Latin for salt is sal (or salis). The North American Indians used seashells. Cigarettes were used during WWII. So, money is simply a medium of exchange and a store of value. By that definition, almost anything could be used as money, but obviously, some things work better than others; it’s hard to exchange things people don’t want, and some things don’t store value well. Over thousands of years, the precious metals have emerged as the best form of money. Gold and silver both, though primarily gold. Recommended Link [UNREAL: Biggest IPO In History - Exposed!]( The fastest-growing company in history is set to go public... And now [a famous venture capitalist has just released this shocking document](... Showing how YOU can profit from their growth... BEFORE they go public! This urgent opportunity will not wait for you... Unfortunately, there just aren’t many spots available today. [Click here to discover the secret before it’s too late!]( -- There’s nothing magical about gold. It’s just uniquely well-suited among the 98 naturally occurring elements for use as money… in the same way aluminum is good for airplanes or uranium is good for nuclear power. There are very good reasons for this, and they are not new reasons. Aristotle defined five reasons why gold is money in the 4th century BCE (which may only have been the first time it was put down on paper). Those five reasons are as valid today as they were then. When I give a speech, I often offer a prize to the audience member who can tell me the five classical reasons gold is the best money. Quickly now – what are they? Can’t recall them? Read on, and this time, burn them into your memory. Money If you can’t define a word precisely, clearly and quickly, that’s proof you don’t understand what you’re talking about as well as you might. The proper definition of money is as something that functions as a store of value and a medium of exchange. Government fiat currencies can, and currently do, function as money. But they are far from ideal. What, then, are the characteristics of a good money? Aristotle listed them in the 4th century BCE. A good money must be all of the following: - Durable: A good money shouldn’t fall apart in your pocket nor evaporate when you aren’t looking. It should be indestructible. This is why we don’t use fruit for money. It can rot, be eaten by insects, and so on. It doesn’t last. - Divisible: A good money needs to be convertible into larger and smaller pieces without losing its value, to fit a transaction of any size. This is why we don’t use things like porcelain for money – half a Ming vase isn’t worth much. - Consistent: A good money is something that always looks the same, so that it’s easy to recognize, each piece identical to the next. This is why we don’t use things like oil paintings for money; each painting, even by the same artist, of the same size and composed of the same materials is unique. It’s also why we don’t use real estate as money. One piece is always different from another piece. - Convenient: A good money packs a lot of value into a small package and is highly portable. This is why we don’t use water for money, as essential as it is – just imagine how much you’d have to deliver to pay for a new house, not to mention all the problems you’d have with the escrow. It’s also why we don’t use other metals like lead, or even copper. The coins would have to be too huge to handle easily to be of sufficient value. - Intrinsically valuable: A good money is something many people want or can use. This is critical to money functioning as a means of exchange; even if I’m not a jeweler, I know that someone, somewhere wants gold and will take it in exchange for something else of value to me. This is why we don’t – or shouldn’t – use things like scraps of paper for money, no matter how impressive the inscriptions upon them might be. Actually, there’s a sixth reason Aristotle should have mentioned, but it wasn’t relevant in his age, because nobody would have thought of it… It can’t be created out of thin air. Recommended Link [Weird new “ticker symbols” showing up on TV]( TV networks are starting to flash odd “ticker symbols” during shows. They don’t have anything to do with stocks or financial indexes. Instead, it’s part of an estimated $400 billion trend that’s about to spread like wildfire. And this strange ticker symbol is the reason why. To find out how to profit from this massive wave... [Click here]( -- Not even the kings and emperors who clipped and diluted coins would have dared imagine that they could get away with trying to use something essentially worthless as money. These are the reasons why gold is the best money. It’s not a gold bug religion, nor a barbaric superstition. It’s simply common sense. Gold is particularly good for use as money, just as aluminum is particularly good for making aircraft, steel is good for the structures of buildings, uranium is good for fueling nuclear power plants, and paper is good for making books. Not money. If you try to make airplanes out of lead, or money out of paper, you’re in for a crash. That gold is money is simply the result of the market process, seeking optimum means of storing value and making exchanges. Regards, Doug Casey Founder, Casey Research Justin’s note: For the first time ever, Doug’s allowing a peek behind the curtain into one of his private meetings… You see, Doug recently met with two of the wisest financial gurus in the business for an evening of candid conversation. Usually, Doug likes to keep these meetings low-profile. The opinions expressed are simply too controversial for a wide broadcast. But this time is different. In short, Doug’s starting a brand-new venture and wants you to join him. [Get all the details right here.]( --------------------------------------------------------------- Reader Mailbag You can share your thoughts on today’s essay, and any questions you may have, right here: feedback@caseyresearch.com. [FACEBOOK]( [TWITTER]( [GOOGLE +]( [SUBSCRIBE]( © Casey Research, LLC 455 NE 5th Ave, Suite D317 Delray Beach, FL 33483 [www.caseyresearch.com]( The email was sent to {EMAIL} because you are subscribed to this service. To unsubscribe, click [here](. Customer Service Casey Research welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact us, call Toll Free: (888) 512-2739, International: (602) 445-2736, Monday–Friday, 9 a.m.–7 p.m. ET, or email us at feedback@caseyresearch.com. Having trouble getting your emails? Add us to your address book. © 2018 Casey Research, 455 NE 5th Ave, Suite D317, Delray Beach, FL 33483, USA. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from the publisher. Information contained herein is obtained from sources believed to be reliable, but its accuracy cannot be guaranteed. It is not designed to meet your personal situation—we are not financial advisors nor do we give personalized advice. The opinions expressed herein are those of the publisher and are subject to change without notice. It may become outdated and there is no obligation to update any such information. Recommendations in Casey Research publications should be made only after consulting with your advisor and only after reviewing the prospectus or financial statements of the company in question. You shouldn’t make any decision based solely on what you read here. Casey Research writers and publications do not take compensation in any form for covering those securities or commodities. Casey Research expressly forbids its writers from owning or having an interest in any security that they recommend to their readers. Furthermore, all other employees and agents of Casey Research and its affiliate companies must wait 24 hours before following an initial recommendation published on the Internet, or 72 hours after a printed publication is mailed.