XAU.AG
What's the deal with Sound Money?
- Limited Government: Sound money limits government's ability to manipulate the currency and engage in inflationary practices, preventing wealth erosion via taxation by inflation.
The quantity of money under a sound money standard is independent of the policies of governments and political parties.
– adapted from Ludwig von Mises
- Avoiding Malinvestment: A monetary system based on sound money prevents central banks from artificially lowering interest rates, which can lead to malinvestment and economic crises.
Paper money has had the effect in your state that it will ever have, to ruin commerce, oppress the honest, and open the door to every species of fraud and injustice.
– George Washington
- Individual Freedom & Prosperity: Sound money ensures stability of purchasing power, encourages responsible financial behavior, and allows individuals to preserve the value of their savings over time. Being able to save for the future allows for a greater ability to respond to different challenges and opportunities that may arise.
This is, I believe, a moral tale. It goes far to prove the revolutionary axiom that if you wish to destroy a nation you must corrupt its currency. Thus must sound money be the first bastion of a society's defence.
– Adam Ferguson, When Money Dies
What are some examples of Sound Money?
- Gold (XAU): Perhaps the most famous example, gold has been used as a form of sound money for centuries. It is durable, divisible, and rare, making it an ideal store of value. Gold has the highest stock-to-flow ratio amongst the metals, meaning much more is held over time by investors than can be added to the supply each year.
Gold is money, everything else is credit.
– J.P. Morgan
- Silver (XAG): Like gold, silver has a long history of being used as sound money. It is less valuable than gold per weight unit, which makes it suitable for smaller transactions. But it has a lower stock-to-flow ratio, meaning the swings in production vs. the supply held for investment are more volatile. This dynamic is seen in the price as well.
Silver is one of the most useful of metals.
– John D. Rockefeller
- Bitcoin (BTC): Bitcoin exhibits the qualities of sound money. The supply is absolutely limited to 21 million coins. Thus it is resistant to inflationary pressures. It is also easily divisible down to 8 decimal places (0.00000001 BTC or 'one satoshi'), and can be transfered over any communications channel directly between peers.
With e-currency based on cryptographic proof, without the need to trust a third party middleman, money can be secure and transactions effortless.
– Satoshi Nakamoto
Put your energy into things that will endure.
Sound Money is money that will endure.
- It won't degrade or get diluted over time.
- If you custody it yourself, then you have zero counterparty risk.
- If you network in your local area, you will have people with whom you can trade and/or barter.
- You don't have to be so dependent upon banks and intermediaries that can cancel you on a whim.
Unlock your freedom.
- Buying Gold and Silver? Use reputable online dealers and local coin shops. Buy 'standard' or 'popular' bullion coins to begin: Gold Eagles, Gold Maples, Gold Krugerrands; Silver Eagles, Silver Maples, Silver Krugerrands, etc.
- Buying Bitcoin? Use Bisq, HodlHodl, RoboSats, Azteco or other KYC-free service (see: kycnot.me ; archived: [1] [2]). Or go to Local Meetups, trade/exchange peer-to-peer, or mine it if you can. If you must use regulated exchanges, stick to those that are bitcoin-only and allow you to withdraw your bitcoin no questions asked.