Physical gold (and silver) is real money …
… everything else is an illusion.
– A lesson from the Gold Standard (Gold Money, June 19, 2011):
Sir Isaac Newton invented the Gold Standard circa 1700. The Gold Standard undoubtedly ranks as one of his greatest achievements given that it became the backbone of the British Empire.
The pound was “as good as gold”, as the saying went, and the pound banknote was accepted around the globe as a substitute for gold itself – but not always. The paper-pound was willingly accepted until there was a banking or financial crisis, which meant the quality of the currency and the reliability of banks became questioned.