When it comes to wealth preservation and growth, nothing strikes me as more important right now than being educated on the role of gold in society. The role in the past, present and future.

‘The money of kings’.

‘Gods money’.

'Natures currency'.

‘He who has the gold, makes the rules’.

‘Gold is money, everything else is credit’.

These quotes are commonly heard in the sound money community but have yet to permeate the vernacular of modern mainstream society.

Todays currencies are not redeemable for gold as they were in the past. Two generations have past since the U.S removed the last remaining gold standard in 1971. The U.S dollar was backed by gold at $35 per ounce and other countries were pegged to the dollar as it was the reserve currency.

The removal of gold backing in 1971 effectively ended the global gold standard.

Now the concept of gold as money has been mostly memory-holed by the establishment.

Famously, former U.S federal reserve chairman Ben Bernanke was asked whether or not he thought gold was money. He said ‘No, it’s a precious metal’.

This memory-holing is for good reason.

The establishment players that holds a monopoly on coercion, extortion and violence within a country, do not want the citizenry to be aware of how gold ownership could benefit them.

If the citizenry is educated on gold, they might begin to prefer owning it as a store of value over their state enforced fiat currencies.

Currencies that they can print and enforce usage at their will.

In the past Western central banks have printed trillions of currency units into existence, usually in suitably branded ‘emergency situations’.

They use these funds to buy treasury bonds from commercial banks (debt securities that you can purchase and receive interest in return) then the treasury uses these funds to spend currency into the economy.

The term used for this process is called 'quantitative easing'.

They do this to keep bond yields low and the availability of credit high. They like it when consumers keep buying things, even if it means sacrificing a necessary healthy recession.

Commercial banks can take comfort knowing that the central banks will buy their bonds when the going gets rough, which in turn distorts market interest rates and dynamics.

It simply isn't a free market.

They carry out this money supply inflation without a commensurate increase in goods and services available, and it causes consumer prices to rise.

Debt increases with the expectations of future generations to pay it back.

This reduces the real purchasing power and wealth of the average person.

This situation could change soon, the current U.S administration is making changes and it could bring about a once in a lifetime change to the monetary system.

It seems the Donald Trump administration in the U.S has plans to intervene in the system. To create a new global monetary agreement, attempt to balance the books of the treasury and reduce the 36.6 trillion dollar treasury debt.

They have already started this process with the Department Of Government Efficiency (DOGE), which has started to eliminate spending and fraud.

They aim to increase domestic manufacturing which we have seen with the recent implementation and pause of import tariffs, which has resulted in large market volatility.

It seems the revaluation of U.S gold bullion reserves to market prices is included in these plans, alongside monetising other U.S assets such as natural resources.

There is a possibility that gold may be re-introduced into the system to back the currency.

If their plan works it will change how the United States dollar is treated by the rest of the world, although the size of the debt problem could prove an insurmountable obstacle.

Their goal is to make American exports competitive again and to create a sustainable future for America.

Take the pain now and avoid inevitable disaster in the future.

The changes, if carried out will affect everyone’s lives globally.

There is enough evidence now to see that a global restructuring of the monetary system is their end goal.

Everyone may go through hard times in this period, but holding certain assets may reduce the hard times for some.

Gold is money and wealth protection that has done its job well for thousands of years.

It could shine very brightly over the next decade.

More on that later.

The Shoe Shine Boy

Consider this hypothetical scenario.

There may come a time in the near future when you go to get a haircut and your long time hairdresser starts mentioning how he is thinking about buying gold.

This surprises you, you notice that you have never heard him talk about gold or investing in the previous three years you have been seeing him.

He has finally noticed that things aren’t adding up. His purchasing power is reducing every year and he can’t seem to save any money.

He learnt about the concept of gold ownership from a friend, he became intrigued and subsequently became enlightened on the role of gold through self-education.

He learnt that the scarce, shiny metal that reminded him of his grandmas gold jewellery collection, may provide the only real risk-free protection from currency debasement and financial counter-party risk.

This hypothetical occurrence taking place would be a sign that the narrative is changing.

You notice the general populace all of a sudden wants to own gold and the price in fiat currency is increasing. This would indicate demand is rising and devaluation of fiat currency in terms of gold is increasing.

You preferably want to own gold before this situation happens.

Purchases of gold by retail investors are very low currently, central banks are doing the buying.

The time will inevitably come when this changes, but we are not quite there yet.

The Properties Of Money

I am not an expert on gold, although I know enough to understand the importance of why it has been used as the most reliable form of money for thousands of years.

Money needs to have certain properties for people to voluntarily use it in everyday trade and transactions.

They are generally as follows:

1. Divisibility – It must be easily divisible into smaller units to facilitate transactions of different values.

2. Portability – It should be easy to carry and transfer, allowing people to use it conveniently in daily transactions.

3. Durability – Money must withstand wear and tear over time without degrading in value or usability.

4. Fungibility – Each unit must be identical and interchangeable with another unit of the same value, ensuring consistency in trade.

5. Scarcity – It should not be easily counterfeited or excessively available, maintaining its value over time.

6. Acceptability – People must trust and be willing to accept it as a medium of exchange.

7. Stability – Its value should remain relatively stable over time to prevent rapid inflation or deflation that could disrupt economic activity.

These properties ensure that money functions effectively as a medium of exchange, unit of account, and store of value.

Gold is indestructible. It doesn’t tarnish and will always have intrinsic value due to demand in jewellery, electronics, medicine, aerospace technology and many other industries such as design, building and fashion.

It is the most malleable and ductile metal. It can be hammered into extremely thin sheets or drawn into extremely fine wire without breaking.

Fiat currency has no intrinsic value. With the exception that you can set it on fire to keep warm or use as toilet paper, but there are much better products for these purposes.

Fiat currency only exists because of the state mandating its use. They do this by enforcing payment of income taxes in their fiat currency, and using violence as an extortion tool if you do not follow their mandate.

The average life cycle of a fiat currency is around 27 years before devaluation, hyperinflation or replacement occurs.

The British Pound Sterling is the longest lasting fiat currency. It still exists today and has survived for centuries, it has existed since 775 AD but the backing of precious metals was removed in 1931.

Since 1931 it has been significantly devalued.

Most fiat currencies in history have been debased enough to end up with a market value of zero over time.

Any type of commodity can be used as money, even cigarettes which are commonly traded in jails, but gold clearly is king when it comes to having the highest qualities required for use as money.

Silver is a close second as it holds many of the same qualities as gold, but that is for another newsletter.

The Spiritual Allure Of Gold

If you have never held pure gold in your hand, I suggest you do what you can to be able to be able to experience it.

Perhaps you have a friend that has some, or you could start off with buying a single one ounce pure gold coin such as an Australian Kangaroo, a Canadian Maple Leaf, a South African Krugerrand or an American Eagle.

It needs to be done to fully understand its value.

You may marvel at the beauty, allure and weight. You may suddenly realise on a spiritual level its true value and why it has been so sought after for thousands of years.

It could also give you the conviction you need in your future gold investment strategy.

Gold fever.

The Mar-A-Lago Accord.

Matt Smith from Doug Caseys Crisis Investing Newsletter has recently written a great piece titled ‘Get ready for Trumps monetary reset’. I highly recommend you go and read it as it outlines the thesis of Trump’s future 'Mar-A-Lago Accord' in greater detail.

Trump wants a weaker dollar to make American exports more competitive.

A strong U.S dollar as the world’s reserve currency means Americans can buy things cheaply from overseas, but it also means there is less demand for American goods as they are too expensive relative to other sources.

This results in trade deficits.

This paradox is commonly referred to as Triffins dilemma.

Dr. Stephen Miran who is President Trump’s nominee for chair of the Council of Economic Advisors, wrote a paper in November 2024 titled "A User's Guide to Restructuring the Global Trading System."

It is a detailed paper that outlines his vision for global trade.

Ultimately, they want to bring jobs and productive capacity back to America.

They want to make American made products more competitive for export and encourage overseas companies to setup manufacturing operations in America.

They want to achieve this through a dollar devaluation.

They also want to create a U.S sovereign wealth fund, and monetise existing U.S assets including gold. They want to do this in order to keep America strong during a dollar devaluation.

If they achieve the goal of dollar devaluation, it means that it will take more U.S dollars to buy one ounce of gold.

Dollar lower, gold higher.

Gold may be re-introduced again to back the currency in some way, in order to establish trust in the U.S dollar.

They could do this through direct backing of the currency. For example 1/20th of an ounce of gold redeemable for a fixed price in USD as it was before 1933, or through gold-backed treasury bonds.

Existing and new treasury bonds may be paid out in U.S dollars or the equivalent market price in gold which would stabilise the dollar.

Current market rates would price 1/20th of an ounce of gold at $151 USD, but that would not back the amount of dollars in circulation.

To gain an understanding of the size of the U.S money supply in relation to gold one needs to consider the amount of currency in circulation.

In order to back M0 money supply the price of gold would need to be around $20,000 USD per ounce.

M0 money supply is the most liquid form of money. It includes physical currency in circulation (coins and paper money) and bank reserves held at the Federal Reserve.

It does not include bank deposits or other financial assets.

If you were to revalue gold using M1 and M2 money supply figures which includes savings deposits, the price would need to be a lot higher.

Trump has already mentioned he wants to go into Fort Knox to audit the gold. The last official audit was completed in 1953 and it was only a partial audit.

This transitional period may result in a difficult period financially for everyone. Everyone may be a loser in the coming years but history has shown that one who holds gold will inevitably lose less.

How To Buy Gold

I personally like 1 troy ounce pure gold coins from reputable mints around the world. They are recognisable, very high quality and beautiful.

Consider that some gold coins incorporate other metals into the coin to make it more durable and resistant to scratches, as pure 0.9999 rated, 24 carat gold is relatively soft.

For example the American Gold Eagle contains copper and silver and the South African Krugerrand contains copper. They both weigh 1.09 troy ounce.

They both contain 1 troy ounce of gold, but are slightly heavier than a pure gold coin such as the Canadian Maple Leaf due to the extra metal used.

The five most popular gold coins globally are the American Gold Eagle, the Canadian Maple Leaf, the South African Krugerrand, the Austrian Gold Philharmonic and the Australian Gold Kangaroo. They are highly liquid and recognised.

Gold bars are available for usually a slightly lower premium, but they are not as beautiful as gold coins in my opinion and have less collector value.

Gold coins can have a legal tender face value and are usually available with a maximum gold content of 1 ounce.

Gold bars are available with a higher gold content, such as a 1 kilogram gold bar. You would pay less premium above spot price than you would if you were to buy the same amount of gold in 1 ounce gold coins.

It is up to personal preference which you choose.

It is always better to hold physical gold as there is no counter-party risk involved if you choose to store it yourself.

There are products available such as the Dirty Man Safe which you can use to store and protect your gold underground.

There are various global gold vaulting services available where you can buy and store your gold. To use these services would introduce counter-party and geographical risk, albeit very low.

Consider the reputation of these services and consider the location. It would be beneficial to choose a location where the risk of a government stealing your gold is minimal.

These services allow for you to withdraw your allocated gold in-person or via shipment at any time.

You can also gain exposure to physical gold via gold exchange-traded funds (ETFs), exchange-traded physical gold trusts and gold mining stocks.

Investment in these instruments introduces considerable counter-party risk. The service may promise delivery of gold upon request, but one must consider default as a real possibility and risk.

There is a saying in the gold community, 'If you don't hold it, you don't own it'. This is generally a principle that should be adhered to.

You can buy physical gold directly from reputable mints around the world or from bullion dealers.

Here is a list of reputable mints that produce high quality gold coins and bars.

In Summation

In the interest of increasing personal freedom in ones life, preserving wealth, growing wealth and getting a good nights sleep, gold ownership is revealing itself to newly interested individuals as an intelligent allocation of capital.

It is the only financial asset that is not some else's liability.

If you hold an asset within a company, brokerage or exchange, they are liable to return your asset when you ask for it, or pay you if you sell it. The risk of default is real.

This risk is not present when holding physical gold.

Gold is money.

It has been used as money for 6000 years and will continue to be used as money into the future.

Happy investing.

-Shernon Hague

*Not to be construed as financial advice. This newsletter is for informational and entertainment purposes only. Please perform your own research when making financial decisions.