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Gold Standard Currencies: The Silver Sterling Pound

 

Gold investors or people who invest in commodities such as precious metals realize that money would ultimately return to what it is really worth and that is zero value. Countries have gone on to print more and more money, so much so, that to date the value of ‘cold hard cash’ has fallen by 200% technically. What an individual is able to purchase with 100 British Pounds at the present moment is nothing compared to what 100 British Pounds was worth almost a hundred years ago.

The wage of a single individual could be no more than 100 British pounds annually. Turning our attention towards gold those who were able to buy 100 British pounds worth of gold a hundred years ago would have managed to buy 50 ounces of gold which is what was needed for him to survive throughout the entire year (A year’s wages in 1900 = 100 British Pounds Hypothetically).

According to the study group Gold and Silver Education in Poland, at present moment if an individual purchased 100 British Pounds worth of gold 100 years ago and managed to pass this gold to his or her grandson, and this grandson intended to sell the gold he inherited he would receive an amount that is approximately an average person’s wages for an entire year in Pounds.

The point they are making is not that gold had increased in its value, but instead gold has kept its value tangible.

It is still worth what it was worth 100 years ago maybe slightly more – due to the fact that gold mining is becoming a dead end enterprise as mining companies are working harder and earning lesser. Most of the surface gold on this planet has been stripped. The remaining gold is in deep mine wells that are being scoured inch by inch by miners looking to earn their keep.

Gold buyers are currently on a buying spree that has seen the recent up scaling of gold price globally compared to panic gold selling a few months ago that sent gold prices to record lows.

Pawn brokers were said to have been sending emails and calling clients to take their gold back and many of them did at lower prices. It is crucial for those who are buying gold or selling gold to know that gold trading is a long term venture and not a quick buck enterprise.

With careful observations of the market movement of the spot gold and silver prices a trader can make much more than 100 British pounds and to add to that statement whatever the 100 British pounds is able to buy now may not be so in the future, but an ounce of gold would always remain and retain the value of an ounce of gold.

For a wealth of information, visit the Polish Gold & Silver Education Study Group's website at www.goldsilver.edu.pl