Gold is money

For thousands of years, gold has been used as a medium of exchange, as money. Gold is still legal monetary tender in many countries, as in the UK with Gold Sovereigns which are free from capital gains tax because they are classed as money.

Up until 1971, all currencies (money) were backed by gold. However on August 15th 1971, for the first time, currencies (money) stopped being backed by Gold. On that day, President Richard Nixon broke the official connection between Gold and currency. The US $, used as the "Reserve Currency" by all nations no longer needed to have an equivalent of Gold wealth behind it and the US was free to manipulate the economy using techniques such as 'Quantitative Easing" which is when Governments print more paper money to try and stimulate growth. The problem with this of course is that it devalues the paper currency which can easily lead to inflation.

Note: This website has no connection whatsoever with goldmoney.com which is the registered business name of Net Transactions Limited, a separate company regulated by the Jersey Financial Services Commission.

With the modern worlds electronic systems, chip based cards, exchange systems and the internet, Gold can easily be used as money. Gold money is the only way in which people can be sure that their wealth is safe. A bank based on gold money is the bank that can not go bust. This website is dedicated to promoting gold as money as well as gold backed money and banking and the companies working to this end.