Will Gold Replace Money?

As the economy continues to tank and gold prices remain steady in the $1650 range, the question once again becomes whether or not gold will replace money in the future. Is such a dire scenario possible? Yes it is – but everything would have to collapse in order for that to happen.

Will the U.S. dollar collapse? That’s a bit more certain and the answer is a resounding “yes”. Will we see hyper inflation in the very near future? The answer to that is an even more emphatic “yes”.

So what does that mean for you and me? It means we have to allocate some portion of our investment strategy to gold by converting fiat paper money to gold. The currency exchange program at Karatbars allows you to do that with no fees involved. It’s simply a matter of protecting yourself against financial crisis at no cost to you.

In fact, setting up a free account at Karatbars also gives you the opportunity to get into the gold business as somewhat of a gold broker, as you offer this service to others and get paid for your referrals… Not bad in an age where people are constantly looking for ways to make ends meet as they get laid off from their mainstream jobs.

Watch this video below where Juan Ramón Rallo, economist and university professor in Madrid, and Alasdair Macleod of the GoldMoney Foundation talk about the role of gold as money:



Rallo states that fiat money does not lead to equilibrium, because it does not fulfill the basic functions of money. Therefore the market is always on the lookout for assets which can be used to fulfill these money functions. This is what caused recent bubbles in stocks and real estate. Gold however is different due to its monetary properties and it’s scarcity compared to the existing stock of gold. Therefore it doesn’t make sense to talk about a gold bubble.

Gold is being monetized by investor demand and should be part of an investor portfolio to protect purchasing power. Karatbars makes this happen without paying any fees whatsoever to do so.

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