Chapter 52 - International Trade

Throughout the history of civilization, copper, silver, and gold have been regularly used as money. It is the potential use of gold as money that gives gold its value. Silver has fallen in value as it is considered to be an unlikely candidate for use as money. Silver was always a good form of money and should be considered as a candidate for money as it will make an excellent alternative currency and will maintain value when the next collapse of the bank credit system occurs. Silver is less easy than gold for the affluent to hoard and manipulate which gives it an important role in protecting the citizens in the event of a collapse of the bank credit system. In the event of a bank collapse, bank credit will cease to be useful and paper money will continue. However, nothing will be a popular and reliable as a few one-ounce silver coins.

Since the beginning of civilized life on planet earth, governments have often printed too much currency causing rapid increases in the Money Supply. This causes unpleasant falls in the purchasing power of the currency. To combat this, money was often tied to the value of gold or silver. This gave greater confidence in the currency particularly if the currency could be exchanged for the backing metal. This is particularly useful after a period of financial turmoil. However, this would cause the opposite problem. It became difficult to expand the Money Supply. Prices with metal backing would vary mildly but in general would be very stable. This stability encouraged and enhanced international trade. Prices were possibly more stable on a worldwide basis than in the current era. The stability of prices in international markets is of great help to import and export trade businesses.