Prior to 1971, the US dollar was backed by gold. Today, the dollar is backed by 2 things: the government’s ability to generate revenues (via debt or taxes), and its authority to compel economic participants to transact in dollars.
Gold bugs often debate the scope and impact of gold price manipulation. Some of these accusations are absolutely true, while others enter the realm of conspiracy.
The long-term risks of quantitative easing, including eroding the credibility of the US dollar, are closely linked to gold's performance.
If you happened to be walking around Paris from 1715 to 1722, you would have encountered one of the first experiments with paper money, centralized banking, and fractional reserves.
The gold supply chain has generated vast riches, strengthened the global economy, and shaped civilizations. Let’s take a look at how the supply chain functions today.