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In the same category 
Some People Still Think Gold is Money
Published : July 14th, 2011
132 words - Reading time : less than a minute
( 1 vote, 5/5 ) Print article
 
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Here’s the most interesting exchange that I’ve come across so far from this morning’s Humphrey Hawkins testimony by Federal Reserve Chief Ben Bernanke before the House Financial Services CommitteeRep. Ron Paul (R-TX) asks about gold.

 

http://www.youtube.com/watch?feature=player_e...p;v=OghDOApA-1k

What do you thing would have happened if Bernanke had said, “The reason that people own gold is because they’re worried about central banks debasing the paper currency – as you know, it’s not really backed by anything…”

As for the answer to the question “Is gold money?”, it hinges on the “unit of exchange” part of the definition of money which, due to its limited use in commerce today, you’d have to say that gold fails. Then again, U.S. dollars come up short in the “store of value” definition

 

Tim Iacono

Iacono Research.com

  

 

 

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Tim Iacono

Tim Iacono is the founder of Iacono Research, a subscription service providing market commentary and investment advisory services specializing in commodity based investing.
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