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.
History, economic theory, and empirical evidence: three arguments supporting gold as the purest form of money.
History is clear: when the money supply increases, the gold price follows. The more dollars are printed, the more can be stuffed into the earth’s limited supply of gold.
Everything you need to know about the two top choices for hedging against the U.S. dollar, and how to take advantage of the forces driving this battle.