If Only More People Could See and Feel Monetary Gold


". . .once it gets into the hands of central banks. . .it simultaneously multiplies itself to infinity and becomes invisible."

As compelling as monetary gold is theoretically and philosophically, even those who invest in gold for monetary purposes are missing something terribly important if they don't have the opportunity to see it. Gold's appeal as money is far more than philosophical; it is, of course, intrinsic.

This was impressed upon me eight years ago at the New Orleans Investment Conference when then chairman of Durban Roodeport Deep, now DRD Gold, donated to GATA, on behalf of the company, 30 1-ounce Krugerrands for the organization to sell at a substantial premium for fundraising. Gold was then about $300 per ounce and GATA sold the coins for $525 each.

Your secretary/treasurer then had to carry, and sometimes hide the coins securely, for a few days until getting them home and shipping them out to their buyers, one by one. The heft and beauty of the metal were both exhilarating and frightening.

Two years ago the American Museum of Natural History in New York staged a gold exhibition, much of which involved monetary gold, including monetary gold recovered from shipwrecks: AMNH Gold Exhibition

I got to visit the exhibition three times and study some of its stuff. It was spectacular, awe-inspiring even.

Of course the advocates of gold's enduring monetary function do not worship the metal. Beautiful as it is, we are not idolaters; our ideals are a bit higher than that—personal liberty, limited and transparent government, fair dealing among individuals and nations, and free markets. But it may be good to get out of monetary theory, philosophy, and politics once in a while and be reminded of why the ages picked the precious metals for money and not seashells, chestnuts, or oxen.

Gold has qualities even more remarkable than its beauty. It is not only supremely malleable and ductile, but once it gets into the hands of central banks, commodity exchanges, and exchange-traded funds, it simultaneously multiplies itself to infinity and becomes invisible. Science has not yet figured this out but it is likely to be discussed by GATA and our friends at the New Orleans conference next month.

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