Gold returns as Money
- A New Stage in Gold’s Return to Money
by Hristo Assenov and Krassimir Petrov, PhD
Prince Sultan University, Saudi Arabia
http://www.financialsense.com/editorials/petrov/2008/1226.html
During December gold appears to have entered a new stage in its return as money. We recently observed a very interesting development in the prices of gold bullion coins that has important monetary implications. Not long ago bullion coins traded with some price differences […]. Interestingly enough, just recently, the listed bullion coins now trade with one price.
So, what is the economic significance of this development? Basically, a single price for all major one-ounce gold bullion coins is a significant sign that gold is regaining its function as money again. However, we are not saying that gold has returned today as money; we are only saying that there is strong anecdotal evidence that the monetary system has evolved today into a new stage, where gold is now much closer to money than a few months ago.
