I am no longer surprised by how misunderstood gold is in the historical monetary context. Detractors like to point out its uselessness as a fungible unit of trade (you can't buy a loaf of bread with a bar of gold) while wizened investors maintain a 10%-15% allocation to gold in the event of a systemic failure in monetary currencies.
Most people can't imagine a monetary system failure such as those that have occurred, from the Zimbabwean dollar to the German mark.
These currencies, and all currencies, are susceptible to collapse if their rate of production exceeds their total valuation by the international community.
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