Money isn’t valuable because it is backed by the precious metal called gold or the money can be exchanged for this precious metal. Gold is valuable because it is a medium of exchange.
The idea that money is just a paper and worthless will be crazy if you think in this manner. This implies that the agreement written between the two people would not have any value to it as the agreement will be written on paper. It is of course the meeting is simply a dialogue between two people and if don’t have any meeting then there would not be any contract at all. If the people do not understand the value of paper, then they should not sign the contract at all and should have t5he meeting of minds. When they sign the contract, their signature will signify that they have understood.
There is a quote which is often quoted in the business law and it states that “signature of a person should not be taken lightly”.
The money which is mostly involved in both government and commercial transactions is not currency. It is often heard from people saying that “if governments require money, they can print it”. However, neither the banks nor the governments require any printing press to print the money. When banks loan money to their customers, that money is not created by anything. Just for accounting purpose, they will cut a check and then put the money in the customer’s account. However, in this process no money is involved. However, large numbers of businesses that do transaction of billions of dollars in the world do not involve currency at all.
Often, people are very much fond of calling the checks as funny money but the fact is that it is not funny as it is as real as currency notes.
When a business man goes to US and obtains a 100 million dollar loan to his business. However, when he comes back to his place, does he get suitcase full of currencies? When you buy anything internationally, all the transactions should be dome in dollars. Due to the USA’s social security system that has spread all over the world, the US will not go bankrupt at all even in the foreseeable future. Even when you do credit card shopping, the money is transferred to the shop owner’s account from the credit card company and the transactions done here do not involve any currency.
You will buy gold thinking that it is one of the best investment options available and you won’t involve in buying gold coins thinking that having money now is worthless. Investing in the gold would be good when it is affordable by many people. While buying the gold, there are types of gold in Middle East namely Emirates Gold, Dinar Muslim gold and maple leaf gold.
sumber: gold vs currency