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Dimitri Speck

Chapter Chapter 35 in The Gold Cartel, 2013, pp 262-267 from Palgrave Macmillan

Abstract: Abstract And how does gold relate to all of this? It doesn’t. Not at all. That is the point: gold is independent from the merry creation of credit and making of money. That is what makes gold interesting for private investors and economies, but also for governments and central banks. As a commodity money its supply cannot be increased at will; it must be mined at great effort and sacrifice. That is a disadvantage, but also an advantage, as its supply is limited. Figure 35.1 shows the extant stock of gold relative to global GDP. In recent decades the stock of gold has increased considerably due to technological progress. However, real global GDP grew strongly as well; economic output grew even more strongly than the stock of gold. Both, however, pale compared to growth in the stock of credit claims (we refrain from including it in Figure 35.1 as it would be ‘off the scale’).

Keywords: Central Bank; Market Participant; Gold Price; Eastern Standard Time; Thin Market (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-28643-7_35

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DOI: 10.1057/9781137286437_35

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