During major crises and currency collapses, gold becomes a currency, and circulated to purchase consumer goods. During the wars, gold has even saved lives ! Watching the behavior of gold in troubled times.
Throughout history, we can observe that gold has always resurfaced during periods of crises and wars.
Why gold takes a predominant position in time of war ?
Gold is a unit of account, a store of value and reserve asset. It is therefore in itself a currency, used for over 6000 years.
In the event of major crisis, gold is still recovering circulating in the economy. When you own gold in the form of coins or bars, you can immediately resell it in a gold dealer counter and have an immediate payment.
Let’s take concrete examples from the lives of some people during World War II for example.
The history of a family of greek industrials during the war.
The son of a wealthy industrialist, soap and oil manufacturer in Salonika in Macedonia and his family have transformed their fortune in gold sovereigns before the invasion of the German army in the winter of 1941. About 3000 gold coins of this type were hidden behind the door frames of their plants. The son says
« Every gust of wind, my mother rushed to see if money had not fallen. As soon as the Germans arrived, they occupied the plant and without the pay, we would have starved. Once a year we reassemble the door to take the money that allowed us to live. Although we do let us not make account on the moment, most of our parents and our friends had done the same. But my big -Father, who trusts the Greek currency, was left with bundles of worthless banknotes, and lost all his fortune. «
Read also : the history of Peter Munk, whose gold has saved his life.
Gold sovereigns : survey kit for aviators during Second World War.
In the years 1916, the pilots of the US and British aviation were paid with small packets of gold sovereigns. The number of coins which was given them depended on the dangerousness of the mission. These gold coins guaranteed their freedom, sometimes in the country where they encountered hostilities. The agents of the SOE (Special Operations Branch, British secret service) were also paid with gold sovereigns in the same way.
The sovereigns were kept in the linings of clothing, in order to buy food and to have means of negotiations in case of conflict with the enemy forces.
During the attack the base of Nazi Peenemunde missiles, SOE commandos take care to take with them a substantial number of gold sovereigns that would serve as means of persuasion for their release if they were captured.
Imagine that the economic, financial or monetary system will collapse. Or a major crisis erupts. With what will you pay the expenses of your life? It is understandable now why central banks accumulate gold in their reserves. Gold has shown throughout history and wars it was a way to escape the crisis, due to its high liquidity. It is a savings that will never deteriorate, you can sometimes transmit the situation to your children.