Advertisements

Gold vs paper money: Which should we trust more?

by Simon Jack, BBC.co.uk:

A popular solution to the financial crisis has been to print more money, but is there another way of fixing our economy? Would the financial system be more stable if each pound, dollar or euro in our pocket was once again backed by gold?

Brian from Manchester has lost faith in money. After selling his house, he decided to turn his cash into something he says he can trust: Gold.

“I started in 2005 and now I’ve got £200,000 worth – about half of what I own – in gold.

“If I kept all my money in the bank, the value of my work would either devalue over the long-term or it would be wiped out.”

Brian’s worry is that inflation will erode the value of his savings over time, or worse still, that fragile banks and governments will fail to protect them in another financial crisis.
Continue reading the main story
“Start Quote

I do fear governments, in their desperate search for wealth, constantly printing more money to deal with the debt that they have at the expense of people like me.”

Frances Investor in gold

And he is not alone in these fears.

Frances, who lives in London, sold her flat in 2008 and invested £40,000 worth of the profit in gold, which she bought via the internet and keeps in a vault in Switzerland.

“I don’t fear a financial Armageddon,” she tells Radio 4′s Analysis, “but I do fear governments, in their desperate search for wealth, constantly printing more money to deal with the debt that they have at the expense of people like me.

Read More @ BBC.co.uk

Advertisements

No comments yet... Be the first to leave a reply!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: