Chapter 1
Why Gold?
Our infatuation with gold has been around as long as mankind itself. Some call it mystical; others call it a barbaric metal. It is a love-hate relationship that has survived the ages. To some it is blind love. To others it is the object of a great quest. Whatever its role in society, it has never been a benign one. It has never been a metal you ignore. We, to this day, refer to the very best of things as “the gold standard of. . . .” We call a great find a “gold mine” and claim something you can count on to be “as good as gold.” We still “go for the gold” and present gold, silver, and bronze medals for achievement. When we hit our prime years, we call them “our golden years.” Gold folklore and all of its history is embedded in our culture.
This tradition did not endure because the years of gold as money were tarnished. On the contrary, gold is as American as apple pie. But, among intellectuals, economists, and policy makers today, gold has a more mixed reputation.
Gold has been praised and denounced; called immaterial and impractical. At the same time it has been craved and adored. Governments have adopted gold as their money, denounced it, confiscated it, demonetized it, and hoarded it. Passions run high when it comes to gold. And so they should. One of the most contested and debated of all subjects is not just gold, but gold as money, gold as a standard of value, gold as an investment, and its role within our national and international monetary systems.
