As a crisis-proof investment, gold is one of the most important investment options for people who are aware of the fact that money is depreciating or inflation is imminent. However, gold is not only an optimal investment, but is also very well suited as a stable and secure means of payment. Gold will assume a key role on the financial market and in the currency systems of the future, says Harald Seiz – founder and CEO of Karatbars. He has already implemented his own idea of developing a currency with a genuine gold component and has thus demonstrated what will matter when it comes to financial security and liquidity in the future.
Money can be influenced by external forces, whereas gold remains stable in value
In order to understand the importance of gold as a means of payment and currency, one must know today’s financial market and the debt money system. All state currencies are fiat money, based on nothing expect a piece of paper with a number printed on it. The number printed on the banknote is a promise that the owner of the money can exchange the printed number for an equivalent product or service. However, as has been shown several times in the past, as well as inflation and talk of the abolition of cash, promises are not a guarantee and therefore surely not a certainty. If war breaks out somewhere in the world or an influential political decision is made, the effects on state currencies become noticeable. Gold, on the other hand, remains stable and has even risen steadily in value. In order to use gold as a currency and a secure means of payment for the future, it is crucial that small denominations are made available. A conventional gold investment bar weighing 100 or 500 grams is virtually impossible to use for payments. Harald Seiz’s vision is based on the combination of a banknote and gold and on gold bars, which can be used as readily available means of payments due to their small denominations. Certainly, the financial market will continue to make use of the debt money system and response to any occurring collapses with a new state currency. Those who want to protect themselves from these risks and not expose their liquidity to the volatility of the world’s decision-makers should make use of a currency that is backed by gold. Even now, a “second financial market” has already emerged as an alternative to the conventional monetary system. Its significance will continue to grow in the future and, as Harald Seiz puts it, will mainly build on the value stability of gold.
Gold – The tried and tested seen from a new perspective
Does gold fit into our progressive society as a currency and in the age of digitization? Harald Seiz sees gold as the only currency that will last forever, as this precious metal is not subject to transience. As a result of it stability in terms of value and the significance of gold in times of crisis, it becomes clearly evident that the precious metal will become even more important in the future. Even today, we see that global currencies will fluctuate more and more and that the future will be exposed to risky decisions, wars and global crises. The state monetary system, the promise made with a printed number on a piece of paper is not a security. On the other hand, a currency with physical gold in practical denominations and global usability is future-proof. Back in medieval times, those who were in possession of gold were solvent, a fact which will certainly not change in the future.