What is meant by the INTRINSIC VALUE of Gold Units?

Gold’s Intrinsic Value Is a Constant.  It Does Not Change!

By: Allain L. de la Motte

There are two widely-accepted beliefs about gold and its role in the monetary system that need revaluation.  The first is that gold will appreciate in value over time due to increasing demand and its limited supply.  The second is that gold is a refuge against inflation and currency depreciation, therefore gold is a safe investment that will appreciate over time.

These ideas are widely accepted but they are distractions from the real issues.  Global banking elites prefer to promote an optimistic view of gold as a steadily appreciating asset, rather than a pessimistic view of the depreciating fate of the world’s “reserve currency“.

As long as the on-ramp to owning gold and the off-ramp to selling gold settle in US Dollars, gold is a sandwich and its price can be controlled through monetary manipulations that create boom-and-bust cycles.

The deceptive aspect of believing that gold is a good investment lies in the assumption that it supports good stewardship.  In reality, investing in gold supports a fiat currency system that creates money out of thin air for manipulation, control, and dominance.  Even if we receive delivery of physical gold in exchange for fiat currencies we change nothing as long as a debt-based fiat currency is legal tender and we are its indentured servants.

Gold ownership may provide short-term protection from a devaluing fiat currency.  However, the impracticality of using a one-ounce gold coin worth $2,000 to buy a $4 cup of coffee means that gold owners will eventually need to exchange their gold for spendable legal tender currency – a fiat.

The critical question is this: is gold more valuable in terms of US dollars because it is appreciating in value, or because the value of the US Dollar is depreciating relative to gold’s constant value?

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