By Geoffrey Pike, Wealth Daily:
Gold has seen its role as a form of money reduced significantly over time.
The U.S. cut off its last link to the gold standard in 1971 under Nixon. There are no longer any significant currencies in this world that are fully or even partially backed by gold.
Yet it is a curious thing that central banks hold gold. Some central banks still buy gold for reserves.
In 2011, then-Congressman Ron Paul asked then-Fed Chair Ben Bernanke why central banks hold gold (as opposed to diamonds). Bernanke’s response was that it is tradition.
Please follow SGT Report on Twitter & help share the message.