No monetary system today is held in such contempt among almost all economists and financial officials as the gold standard. The U.S. was on one for 180 years until the early 1970s, and it worked. We never experienced inflation while the dollar’s value was tied to the yellow metal, and the U.S. had the greatest long-term economic growth in human history.
Since the greenback’s link to gold was severed, our average historic growth rates have fallen by about one-third. Nonetheless, the contumely and scorn for gold is universal. Or is it?
Events have a peculiar way of forcing things once unthinkable into the forefront of consideration, and then into reality. This segment of What’s Ahead lays out the unmistakable signs of change, starting with the startling fact that recently central banks have been buying gold at a record pace.
