What does gold do in a modern-day financial world?
The world runs on an "I owe you" (debt) with some collateral value behind it.
The collateral may be a business, house, a talent, or advantage (the right to tax) the borrower has.
But when all these collateral's fail, there is only one type of collateral that is the undisputed champion of them all, and this is gold.
When the world has faced an incredible financial crisis of debt, gold has been the savior.
Some examples:
Chart 1 - USA Dow Jones 1929 Financial crash on massive excess of debt was only reversed by gold.
Chart 2 - The Asian crisis of 1998, South Korea collapse was only reversed by gold.
Currently the gold price is rising as the world debt level increases.
Nothing has changed.
The world knows what it will need when collateral fails again.
.webp)
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