Email of the day (1)
Comment of the Day

July 19 2011

Commentary by David Fuller

Email of the day (1)

On Bernanke saying: "No, it is an asset" in response to Ron Paul's question last week: "Do you think gold is money?"
"Please keep up the great work, without which my daily life would be considerably poorer, in knowledge as well as assets.

"I was interested in your comment today that "Gold and silver are the monetary metals of choice". Do you disagree with Bernanke then when he says that "Gold is not money". Surely he is wrong in this opinion but I suppose that to admit that it is money could have difficult implications for him eg vis-a-vis the US Dollar.

David Fuller's view We try our best, as do you in seizing your opportunities in the markets.

On watching that video, posted in Thursday's Comment, I think Ron Paul could have phrased the question slightly better. Even then, on hearing the question, did you notice that Mr Bernanke hesitated and that his eyes looked left before he replied?

I wish Ron Paul had asked: Do you think gold is a monetary metal? I do not think that Ben Bernanke could have said no to that. So, yes, I disagree with Mr Bernanke; gold coins have been money for centuries. Although seldom used as a means of exchange today, gold's monetary track record is vastly superior to any fiat currency over the longer term, and always will be for obvious reasons.

A steady refrain at Fullermoney since at least 2005 has been that gold was being remonetised in the eyes of investors - a message repeated 59 times according to this search of the Archive. (Note - I did not search under remonetised because approximately half the time this has been spelled as remonetized.)

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