In this video, economist and Madrid university professor Juan Ramón Rallo discusses the role of gold as money with Alasdair Macleod of the GoldMoney Foundation.
Among one of the better points stated in the video, Rallo points out that fiat currencies do not lead to equilibrium because they don’t fulfill the basic functions of money. Due to this fact, the free market is always searching for assets that can be used to satisfy this needed function of money. This scenario is exactly what caused both the real estate and stock market bubbles that we’ve seen in recent years, however gold is a different animal altogether due to its scarcity and unique monetary properties.
If you’re interested in a secure, affordable, and convenient way to diversify your holdings and preserve your purchasing power with precious metals, be sure to read our GoldMoney review.