Why fiat currencies fail and gold retains its value
The US dollar has ruled for about 51 years. The U.S. is using the dollar like a weapon in the current Ukraine-Russia situation. Moscow and Beijing seem to want an end to the dominance of the U.S. dollar. Indeed, the Russian Kremlin leader recently wanted to supply gas only against rubles. Today, countries hold about 60 percent of foreign currency reserves in the form of U.S. dollars. Ruble and yuan would like to tie their currencies to commodities.
Many fiat currency systems have failed. Paper money has always been determined by its users as a means, a bridge between production and consumption, a medium of exchange. And over the millennia, various means of exchange have come and gone. Metallic money has survived, especially gold, silver and copper. Coins are legal tender. Metallic gold and silver are actually credits in the form of production that has not yet been consumed. Today, the U.S. dollar has lost immense purchasing power. A hundred years ago, its value was much higher; one dollar was worth about the same as $26 today. The declining value of fiat currencies is offset by rising prices for services and goods.
Central banks are creating more money to prop up the economy. Today, the expansion of the money supply is greater than ever and the purchasing power of paper money continues to decline. Gold behaves differently, has always retained its value and will continue to do so in the future. So gold investments are a kind of insurance. For investments in gold stocks, Caledonia Mining - https://www.youtube.com/watch?v=tQg_KtGnQto&t=1s - or Gold Terra Resource are promising candidates. Caledonia Mining is a dividend paying and successful gold producer in Zimbabwe. In the current year, the Blanket mine is expected to produce between 73,000 and 80,000 ounces of gold. Gold Terra Resource - https://www.youtube.com/watch?v=nMVbyxX92_U - owns the large Yellowknife City gold project in the Northwest Territories. Recent drill results yielded up to just over 14 grams of gold per ton of rock
Current corporate information and press releases from Caledonia Mining (www.resource-capital.ch/de/unternehmen/caledonia-mining-corp/) and Gold Terra Resource (www.resource-capital.ch/de/unternehmen/gold-terra-resource-corp/).
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