No doubt you have heard about "gold money"? But I would like to give you a slightly different take on it. I am not writing here about digital gold accounts- instead real "gold money". First off many people do not realize that gold IS money!
Maybe I need to clarify that point by defining what is meant by money: "Money is anything that is generally accepted in payment for goods and services and in repayment of debts. account, and a store of value. "
If you see the videos of people in Zimbabwe exchanging gold for bread you will know "gold is money." But when you look at your gold coin collection, you are looking at real money.
I know what you are thinking "but these are only bullion coins" or "they are no longer legal tender". True, but have you ever heard of ISO 4217? No … did not think you had. Well ISO 4217 is the INTERNATIONAL STANDARD which defines currency codes.
These codes are used in high finance for currency trading and all the way down to purchases of things like airline tickets. Here is a basic outline of how it works: The first two digits are normally the country code … so that may be "US". And the third digit the initial of the currency, so in this case "D" for dollar. Here giving us a currency code USD.
BUT- and here's where every gold coin owner & bullion bug fits up and takes notice … ISO4217 ALSO includes codes for precious metals eg GOLD. In the case of gold and supra national currencies the code begins with an X and is followed with the chemical symbol.
SO, gold's code is XAU. That's right; gold has its own currency code, just like the Euro, dollar and yen. Gold coins may not be used in transactions in your town (yet), but some of the framework is in place … After all it is "Gold Money".
Till next time,
Happy gold coin collecting,
Paul
