by Jeff Nielson
Bullion Bulls Canada
Informed readers will be well-acquainted with the fact that gold and silver are “monetary metals”, since this property of precious metals is widely reported. Where readers will have far less clarity is in terms of what this actually means, since it is rarely (if ever) explained.
Referring to gold and silver as monetary metals means far more than the simple fact that gold and silver are “money”. Indeed, it implies more than the fact that gold and silver are (both) Good Money. What makes gold and silver monetary metals is the fact that they represent the perfect standard and/or metric to reflect changes in our monetary system. It is this property of reflecting such changes that makes gold and silver monetary metals.