The government’s interference in the market has led to many inflation and depression cycles that have etched themselves in time. Even though the price of gold has increased, there is no government control when it comes to the production of gold. Gold cannot be “printed” to depreciate it, leading to a catastrophic inflation or fluctuation within the market. Gold is the most stable of investments and is the strongest when it comes to any type of inflation. A fiat system will not take place within the gold industry because of how it is created as a mine resource. Just because the government has the option of mining more gold it doesn’t mean that it’s similar to the fiat system. The mining and production of more gold is actually progressive when it comes to financial prosperity because the gold producers must limit the gold that they are releasing so that it meets with their economic requirements.
Thomas Jefferson once said- “If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered.”
Gold is not like oil; meaning that if the amount of gold is decreased then the people will also use their gold less frequently. Gold is called a “precious” metal because it cannot be used as an everyday resource. If there were to be a restriction in the gold supply there would have to be a cartel of producers and if gold were to rise then people would begin to take out the savings that they have in gold already. The government cannot control all of the money supplies being that there are very different sources of wealth. Not every gold owner is going to illustrate the same activity with their gold either. If anyone were to try to prevent the gold from leaking into the market then it would be substituted by the miners who are willing to produce more. Whenever there is a problem relating to a concept, such as fiat currency, and its relationship to gold there is most often some sort of a demand in the market to find a solution. When there is an entrepreneur who finds an answer to the problem and demand then he or she is guaranteed a profit. If there is any type of economic culprit whose intention is for power, then they will damage the exchange of money and its current stability. Money is the protection that we have against ourselves which is why the culprit would attempt to control the economy and the fiat currency through gold; this in turn, wouldn’t work. If gold could be controlled and could be produced within the snap of a finger then it would ruin the standard of it. Gold is a value and is equal to the amount of wealth and the idea of progress that is produced over time.