Some Great Quotes on Gold
There are generally considered to be two schools of economic thought concerning gold: the Keynesians and their fellow travellers consider gold to be “a barbarous relic”, in Keynes’ words. The other side, such as the Austrian school, considers that gold (and silver) are real wealth. In a debate during the Great Depression, Hayek of the Austrian School recommended continuing the gold standard that linked fiat currency to gold. Keynes said no, let’s print.
In my opinion neither side is right. Today we have extreme Keynesianism. This is not working too well, but I doubt the answer would be a return to a pure gold standard. Warren Buffet has a more practical view. He estimated that all the gold in the world would be equivalent to all US farmland. He would rather have the farm.
The following quotes are in no particular order. I hope you find at least some of them worthy of reflection.
Gold has worked down from Alexander’s time … When something holds good for two thousand years I do not believe it can be so because of prejudice or mistaken theory.
Bernard M. Baruch
You have a choice between the natural stability of gold and the honesty and intelligence of the members of government. And with all due respect for those gentlemen, I advise you, as long as the capitalist system lasts, vote for gold.
George Bernard Shaw
Gold is not necessary. I have no interest in gold. We’ll build a solid state, without an ounce of gold behind it. Anyone who sells above the set prices, let him be marched off to a concentration camp. That’s the bastion of money.
The road to hell isn’t paved with gold, it’s paved with faith. Faith in a dollar that’s backed by a belief that people have faith in other people’s belief in it.
[Gold] gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.
We will answer their demand for a gold standard by saying to them: “You shall not press down upon the brow of labour this crown of thorns, you shall not crucify mankind upon a cross of gold.”
William Jennings Bryan
It is health that is real wealth and not pieces of gold and silver.
Labour was the first price, the original purchase – money that was paid for all things. It was not by gold or by silver, but by labour, that all wealth of the world was originally purchased.
If I have cash and I can’t figure a way to put it into real estate or my business, I hold it in gold and silver.
Everything has its limit – iron ore cannot be educated into gold.
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.
An almost hysterical antagonism toward the gold standard is one issue which unites statists of all persuasions. They seem to sense… that gold and economic freedom are inseparable.
Ferdinand was a gold trader. He was a lawyer for mining companies. When he entered politics in 1949, he had tons and tons of gold. When Bill Gates was a college dropout, Ferdinand already possessed billions of dollars and tons of gold. It wasn’t stolen.
The world’s central banks and the International Monetary Fund still have vaults full of bullion, even though currencies are no longer backed by gold. Governments hold on to it as a kind of magic symbol, a way of reassuring people that their money is real.
A gold standard doesn’t imply stability in the prices of the goods and services that people buy every day, it implies a stability in the price of gold itself.
A U.S. dollar is an IOU from the Federal Reserve Bank. It’s a promissory note that doesn’t actually promise anything. It’s not backed by gold or silver.
P. J. O’Rourke
Back in the day, I would wear up to 45 pounds of gold. It would take me four hours to get dressed!
Don’t gain the world and lose your soul, wisdom is better than silver or gold.
If you have faith in our leaders of commerce, don’t buy gold. If you do not have faith in them, maybe you should buy gold or silver.
Over the long run, the price of gold approximates the total amount of money in circulation divided by the size of the gold stock. If the market price of gold moves a long way from this level, it may indicate a buying or selling opportunity.
Although gold and silver are not by nature money, money is by nature gold and silver.”
The history of fiat money is little more than a register of monetary follies and inflations. Our present age merely affords another entry in this dismal register.
Hans F. Sennholz
There are about three hundred economists in the world who are against gold, and they think that gold is a barbarous relic – and they might be right. Unfortunately, there are three billion inhabitants of the world who believe in gold.
For more than two thousand years gold’s natural qualities made it man’s universal medium of exchange. In contrast to political money, gold is honest money that survived the ages and will live on long after the political fiats of today have gone the way of all paper.
Hans F. Sennholz
Gold is not less but more rational than paper money. Money holds value so long as it is in limited supply; gold will always be in limited supply, and would require real resources to produce even from the sea; paper and printing ink are not in limited supply. The gold system is much closer to a modern automatic scientific control system than the crude and relatively unstable system of paper.
Bullion doesn’t pay interest or dividends, nor does it grow or expand by itself. That’s the price you pay for tranquillity.
Gold will be around, gold will be money when the dollar and the euro and the yuan and the ringgitt are mere memories.
Regardless of the dollar price involved, one ounce of gold would purchase a good-quality man’s suit at the conclusion of the Revolutionary War, the Civil War, the presidency of Franklin Roosevelt, and today.
Peter A. Burshre
Nothing beats a little cash in a bear market, of course, and the oldest form of cash is gold.