1 Gold is not scarce, it is abundant – relative to how much is mined. Gold’s stock-to-flow ratio is higher, far higher, than that of any other commodity.
2 It is the stock-to-flow ratio that gives Gold its stability of value.
3 Money is properly defined – a known weight and purity of Gold.
4 Money is not subject to the laws of supply and demand, which apply only to goods and services (intangible goods). Money is not a good (no, not even ‘the most marketable good’).
5 Money’s primary function is to be the one and only store of stable and known value over time. In a world where there are no absolutes, Gold is the closest to absolute stability of value. It has been so since time immemorial.
6 Money’s secondary function is to be the best measure of value in the marketplace. Gold allows each individual to precisely quantify his or her perception of a good’s value.
7 A known weight and purity of Gold is the world’s oldest extant unit of measure.
8 By definition, one cannot invest in money. One can however use money to invest in paper currencies. The ‘price of Gold’ graphs need turning upside down and back-to-front. They then show what is really being measured – the volatile value of paper currencies.
9 Those who promote the idea that one can measure the value of Gold using paper currencies (the logically challenged Gold bugs) are propagandists for central bankers. They are a part of the problem, not the solution.
10 Those who acknowledge on the one hand that paper money is heading to zero value, and on the other hand invest in Gold (or advise you to) in the expectation of making a fortune – in paper money – are irrational.
11 On the day that a significant number of people come to the belated realization that Gold is the one and only measure of value, the world’s paper currencies will begin their collapse.
12 The permanent withdrawal of Gold’s bid on paper currencies is called Backwardation. Unless you are on your deathbed you will live long enough to experience it.