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A Short History of Gold

1.1 Why Gold?

SINCE the dawn of creation, gold has been held in high esteem as a store of value and a universalmonetary substance in all civilizations. But why?

Pleasant to the touch, highly malleable, resistant to all external influences, deep yellow in color and with deep luster, gold has captivated mankind and won a special place in human history. Clearly, this love of gold is not limited to the capitalist economic system.

Gold was greatly sought after in Greek and Roman times and throughout the Middle Ages. It is prized in the Middle East where it was used for the first time as money, and itís also highly valued in China, Africa, the pre-Columbian America of the Aztecs and Incas, in the Russian Empire and even among the followers of Attila and Genghis Khan.

Thus gold is one of the few common values that has united mankind throughout the millennia, transcending race, religion and geography - a rarely noted fact but significant in light of today's growing cultural convergence and emerging global economy.

After thousands of years serving as the world's money in the form of coinage, the advent of paper and electronic money is now challenging gold's monetary role in the 21st century.

Gradually, throughout the last several decades, gold has assumed a new role as a monetary reserve medium, rather than a medium of exchange. This subtle yet powerful monetary shift has gone mostly unnoticed by the American public.

By 1999, the powerful central banking community that controls all modern money creation began advocating the complete abandonment of gold as a monetary reserve.

Is this historic shift the result of the natural progression of human maturity? Is this the natural evolution of money, as Darwinian - Keynsian economists would say?

Or, is it a quantum leap toward total manipulation of the masses into a single manageable global political, social and economic system?

These questions are growing in the minds of many Americans. Let's quickly review America's monetary history and see if we can find some answers.

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