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The abandonment of the gold standard during World War I allowed countries to print money to fund the war, which would not have been possible if they adhered to gold's discipline. This shift marked the beginning of the end for Europe's dominance.
The Wall Street crash and subsequent deflation forced most countries off the gold standard in the 1930s, except for the United States. Roosevelt's New Deal made it illegal for Americans to own gold.
In 1971, America came off the gold standard due to excessive spending on the Vietnam War and President Johnson's welfare programs. This led to a situation where the US didn't have enough gold to back the dollars it had printed.
Investing in physical gold offers a private and secure way to protect wealth. Unlike digital assets, gold is a tangible asset that remains safe even if the banking system falters.
Throughout history, gold has been melted down and repurposed, erasing its provenance. This means that a piece of gold today could have been part of ancient artifacts or even handled by historical figures.
The default response to financial crises, like during COVID, has been to print money, which devalues currency and impacts regular people who are already struggling.
Gold and Bitcoin are non-government forms of money that cannot be debased, offering protection against currency devaluation. They may play a crucial role in the future.
Since the final vestiges of the gold standard were abandoned in 1971, the supply of money has ballooned. This has led to more money chasing the same amount of goods, contributing to the rise in prices over the years.
Gold is created through interstellar collisions in outer space, making it older than the Earth itself. Handling gold is the closest you will ever come to touching eternity, as it remains unchanged over time.
The gold sovereign, introduced in 1816 after the Napoleonic Wars, was the most successful coin in history. Today, it takes 650 modern pound coins to buy what one old pound coin was worth, illustrating the extent of currency debasement over time.