Today, gold is no longer used as a medium of exchange. Yet, according to the European Central Bank, “Gold remains an important element of global monetary reserves.” Why is that?
In this whitepaper, Advisor Capital Management’s Senior Economic Advisor, Dr. Alan Greenspan, offers a brief, yet insightful, historical overview of the role gold has played in society, with an explanation of why central banks around the world continue to hold an asset whose rate of return is negative.
Download Gold: The Historical Reserve Currency to learn more about:
- The difference between representative money and commodity money
- How gold went from playing a crucial role in foreign trade to no longer being used as a medium of exchange in today’s economy
- The series of discussions where policymakers contemplated selling off their gold bullion and the reasons why, to date, it hasn’t happened.
Access the whitepaper here.