Gold and Economic Freedom

Gold acts as protector of the people’s economic freedom

Bullion.Directory precious metals analysis 3 September, 2014
By Terry Kinder
Investor, Technical Analyst

Gold’s role as the keystone of economic freedom was outlined by Alan Greenspan in 1966 in The Objectivist.

In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.

This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard.

Gold is much more than an investment, speculation or a form of insurance against inflation, devaluation or monetary collapse. In fact, gold is the keystone that allows an economy with specialization, exchange and savings to develop. Gold stands in the way of the stealth confiscation of wealth imposed on citizens by a fiat currency with few, if any, limits.

Gold helps insure economic freedom and protect individuals from governments whose desire to spend other people’s money knows no bounds.

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