S P Sharmai

Stories by S P Sharmai

Where there is money, there is gold

Where there is money, there is gold

Rediff.com   9 May 2008

The essential and irreplaceable function of gold in the global financial system is money. Gold exists in a relatively fixed supply and is the only currency that cannot be inflated at the discretion of political and economic advantages. It is a true store of wealth, unlike the paper currencies that can be created in unlimited quantities. Gold can be over or undervalued by investors at any point in time, but over the long-term, its purchasing power remains stable.