The US reneged on its promise to exchange dollars for gold in August of 1971. Dollars were still the world’s reserve currency, but nobody had any guarantee that they would remain limited and valuable.
More from Bill Bonner
Broken Rules for Fools
Real money shouldn’t have any purpose or value other than as money; it is meant to keep track of the values for other things, not to have a value of its own.
The Ford Tortoise and the Golden Hare
If you wanted to make money safely, you’d own profit making companies. Buy them when they were cheap and sell them when they were dear. But how would you know when they were cheap? Check gold.
Bill Bonner is the editor for
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