Wise Accounts Blog

Buying and selling would not be possible if we didn't have a reference mechanism to trade goods and services against a token value.

Since biblical times gold was used for that very purpose. In 1968 in the US you had the assurance you could swap your dollars at the rate of $35 per ounce of gold.

Gold and silver coins were the common means of exchange all the way to the 20th century. It's only very recently that the Bretton-Woods accord was dismantled

Credit cards are so widespread because of the convenience of not carrying cash wherever you go plus the appeal of having a permanent unsecured line of credit.

It is such a boon for banks who collect their commission along the way that they absorb and manage all fraudulent transactions themselves.

With the advent of the internet the question arose as to how one could send money via email. The answer was PayPal.

It seems each time the integrity of money is at risk - convenience wins. If enough people jump in the pool then those who sit on the side line are missing out on all the fun (sorry, I meant profit).

For a web merchant the choice is bleak. Either you make the sale on EBay or the buyer will find a click away someone else who gladly will. And so the system gathers momentum.

The global economy has been a bonanza for exporters in Third World countries who can flood the market with cheap goods produced by enslaved labour. It also means that western democracies have forgotten how to make staple goods which are now deemed cheaper to import. Talk about sovereignty and financial independence.

Only ten years after the introduction of the euro, the Greek debt crisis has shown countries the dangers of relinquishing their national currency.

Things are so interconnected and leveraged that one hiccup in one place can cause havoc at the other end of the globe.

Nowhere on the face of the earth can you pretend you are immune to this turmoil.

You now see the emergence of Gold Buyers stands in every shopping centre. Obviously someone thinks it is important to buy gold from private holders.

When the monetary system collapses (not in my lifetime, thanks) what will you sell to buy your next meal? Your dog? Your wife? Your children? What about having some gold or silver in reserve hidden in a hollow...

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