In an essay featured in Foreign Affairs titled “Golden Rule: Why Beijing Is Buying”, former Federal Reserve Chairman Alan Greenspan praises the various properties and benefits of physical gold, claiming “gold has special properties that no other currency, with the possible exception of silver, can claim.”
He makes some other compelling statements, such as:
“For more than two millennia, gold has had virtually unquestioned acceptance as payment. It has never required the credit guarantee of a third party. No questions are raised when gold or direct claims to gold are offered in payment of an obligation; it was the only form of payment, for example, that exporters to Germany would accept as World War II was drawing to a close. Today, the acceptance of fiat money — currency not backed by an asset of intrinsic value — rests on the credit guarantee of sovereign nations endowed with effective taxing power, a guarantee that in crisis conditions has not always matched the universal acceptability of gold.“ [emphasis added]
He adds that 36 out of the 40 countries that report to the International Monetary Fund (IMF) hold gold as part of their reserve funds, and that the United States has held onto its gold reserves even during periods economists were criticizing gold. In 2014, the European Central Bank stated, “Gold remains an important element of global monetary reserves.”
His statements emphasize the worldwide acceptance of gold as a highly liquid, protective asset. This is true both for individual investors holding gold and central banks of major countries. Due to its long-held, widespread recognition as a unit of exchange and a store of value, gold can be easily bought and sold almost anytime, anywhere. To read more of what Greenspan has to say about gold, see the entire article.
If Greenspan’s words on gold have you thinking about taking steps to protect your wealth, consider adding physical gold and other precious metals to your retirement portfolio by opening a Gold IRA. Call American Bullion today at 1-800-326-9598 to speak with a precious metals specialist.